Global stocks were resilient last week Friday with major arenas clawing back gains following the upbeat corporate earnings and stabilising oil prices which revived risk appetite. Asian shares floated into gains on Monday as the improving Japanese trade data propelled the Nikkei +0.29% higher. European markets have already commenced this week on a solid footing by borrowing Asia’s bullish momentum and this could influence Wall Street later today.
In light of the slightly weaker payroll reading for September, while some might be looking forward to the implications for monetary policy, it’s worth asking another question to arrive at the same answer. Considering the 156,000 reading for jobs last month, might the FOMC have regretted raising rates when it had the opportunity to do so three weeks ago? After all, the unemployment rate ticked up a notch to 5% for September.
Asian equities were mixed on Tuesday after Wall Street ended yesterday in red and investors continued to digest news that the UK will begin its official departure from the European Union in March 2017.
The European Central Bank is set to keep its interest rates low until it gets inflation back to its target, the ECB's chief economist said on Tuesday, arguing it was not up to the institution to shore up meager bank profits.
Dallas Federal Reserve President Robert Kaplan said on Monday he would have been comfortable with an interest rate increase at the Fed's policy meeting last week when the central bank chose to keep rates steady.
Dollar bullish investors were left empty handed on Wednesday following the Federal Reserve’s widely expected decision to keep U.S. interest rates unchanged. It is becoming increasingly clear that the ongoing global uncertainties have created an unstable financial landscape which continues to keep most central banks cautious.
The U.S. dollar extended losses against a basket of major currencies on Wednesday after the U.S. Federal Reserve left monetary policy unchanged and projected a less aggressive rise of interest rates in coming years.
The U.S. Federal Reserve left interest rates unchanged on Wednesday but strongly signaled it could still tighten monetary policy by the end of this year as the labor market improved further. Fed Chair Janet Yellen, speaking after the central bank's latest policy statement, said U.S. growth was looking stronger and rate increases would be needed to keep the economy from overheating and fueling high inflation.
The FOMC will not hike. This may seem to merely confirm what has become a consensus view. As of this morning many of market participants have come around to feeling there is no basis for FOMC to hike rates Wednesday afternoon. Yet, this sentiment was not nearly as strong into and immediately after the Fed’s Jackson Hole Policy Symposium "hawk-fest" three-and-a-half weeks ago.