Expectations That US Central Bank Will Not Raise Interest Rates Lift Asian Equity Markets
October 6, 2015 6:10 am
Expectations that the U.S. Central bank will not raise interest rates this year helped lift Asian equity markets to two-week highs on Tuesday. The MSCI’s broadest index of Asia-Pacific shares bar Japan was up 0.8 percent in afternoon trade, after earlier touching its highest levels since September 18th. The Nikkei225 ended up 1 percent at 18,186.10, bouncing back from an eight-month low hit a week ago. Japanese shares gained further momentum from speculation that the Bank of Japan might look to add to its stimulus program to support the lagging economy. The BOJ began its two-day policy meeting on Tuesday, at which it is widely expected to hold monetary policy steady. But a surprise cannot be ruled out, and pressure is building on the central bank to act. That boosted sentiment towards riskier assets, which have been long hit by threats of higher dollar borrowing costs as well as fears of a deeper slowdown in China.
The dollar was mixed against major currencies as the fading expectations for a Fed hike were countered by positive risk sentiment. The dollar index about 0.1 percent to 96.036, against the yen the greenback was at 120.38 down about 0.1 percent, while against the euro traded at $1.1188 only down slightly.
Better risk appetite aided the Australian dollar to a 2-week high of for a fifth month at $0.7120 in addition the Australia’s central bank kept its cash rate unchanged at a record low 2.0 percent on Tuesday for a fifth straight month.
Global crude benchmark Brent LCOc1 was up 0.4 percent on Tuesday at $49.42 a barrel after soaring 2.3 percent overnight, led by a rally in U.S. gasoline and Russia’s willingness to meet other major oil producers to discuss market conditions. U.S. crude was up 0.2 percent at $46.35 after gaining 1.6 percent in the previous session.
Over in the UK equity markets. EasyJet Britain’s low cost airline reported higher passenger figures for September along with maintaining it full year profit guidance shares are currently trading 1807 +0.11% Britain’s Greggs plc posted a 4.9 percent rise in like-for-like sales in the 13 weeks to Oct. 3, helped by new products such as a spicy meatball melt baguette, and said its growth for the year would be slightly ahead of its forecasts currently the shares are changing hands at 1149 +6.56%.
Data releases today include the US trade balance at 1.30 Canadian PMIs at 3pm and later in the evening we have the ECBs Heard Mario Draghi speaking.
Currently the FTSE is trading at 6260 -57 and the DAX at 9740 -115.8.
Expectations that the U.S. Central bank will not raise interest rates this year helped lift Asian equity markets to two-week highs on Tuesday. The MSCI’s broadest index of Asia-Pacific shares bar Japan was up 0.8 percent in afternoon trade, after earlier touching its highest levels since September 18th. The Nikkei225 ended up 1 percent at 18,186.10, bouncing back from an eight-month low hit a week ago. Japanese shares gained further momentum from speculation that the Bank of Japan might look to add to its stimulus program to support the lagging economy. The BOJ began its two-day policy meeting on Tuesday, at which it is widely expected to hold monetary policy steady. But a surprise cannot be ruled out, and pressure is building on the central bank to act. That boosted sentiment towards riskier assets, which have been long hit by threats of higher dollar borrowing costs as well as fears of a deeper slowdown in China.
The dollar was mixed against major currencies as the fading expectations for a Fed hike were countered by positive risk sentiment. The dollar index about 0.1 percent to 96.036, against the yen the greenback was at 120.38 down about 0.1 percent, while against the euro traded at $1.1188 only down slightly.
Better risk appetite aided the Australian dollar to a 2-week high of for a fifth month at $0.7120 in addition the Australia’s central bank kept its cash rate unchanged at a record low 2.0 percent on Tuesday for a fifth straight month.
Global crude benchmark Brent LCOc1 was up 0.4 percent on Tuesday at $49.42 a barrel after soaring 2.3 percent overnight, led by a rally in U.S. gasoline and Russia’s willingness to meet other major oil producers to discuss market conditions. U.S. crude was up 0.2 percent at $46.35 after gaining 1.6 percent in the previous session.
Over in the UK equity markets. EasyJet Britain’s low cost airline reported higher passenger figures for September along with maintaining it full year profit guidance shares are currently trading 1807 +0.11% Britain’s Greggs plc posted a 4.9 percent rise in like-for-like sales in the 13 weeks to Oct. 3, helped by new products such as a spicy meatball melt baguette, and said its growth for the year would be slightly ahead of its forecasts currently the shares are changing hands at 1149 +6.56%.
Data releases today include the US trade balance at 1.30 Canadian PMIs at 3pm and later in the evening we have the ECBs Heard Mario Draghi speaking.
Currently the FTSE is trading at 6260 -57 and the DAX at 9740 -115.8.
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