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Shares and oil rally ahead of crunch central bank meetings – business live

Discussion in 'Market News' started by Lily, Sep 19, 2016.

  1. Lily

    Lily Forum Member

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    European stock markets rally as investors await news from the Bank of Japan and the US Federal Reserve later this week


    8.17am BST

    Shares are rallying in London at the start of trading, sending the blue-chip FTSE 100 up by 66 points to 6776.

    Mining shares are leading the way, with Glencore jumping 2.9%, Anglo American gaining 2.7% and BHP Billiton up by 2.5%.

    8.05am BST

    Most Asian stock markets have gained ground today.

    China’s market rose by 0.65%, the Hong Kong market jumped by almost 1%, and South Korea is up by around 0.9%.

    7.43am BST

    Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

    There’s an autumnal feel in the City this morning, with the cloudy skies neatly matching the feel in the markets right now.

    Morning all. Welcome along to yet another week of unhealthy focus on the world's major central banks #fed #boj

    The BOJ has struggled ever since their surprise decision to cut rates into negative territory backfired at the end of January. In that regard, they followed the path of the Chinese authorities whose decision over a year ago to let the yuan weaken backfired equally spectacularly, and the Swiss National Bank, whose decision to remove the EUR/CHF floor at 1.20 did nothing to ease reserve accumulation, nothing to boost capital outflows and nothing to fight deflation. But they’re the lucky ones, as the economy appears to have weathered the strong currency relatively well over the last 18 months....

    I think there’s a really good case for the BOJ to grasp the nettle and ease again, to drive real yields down as inflation expectations rise.

    Goldman slashes odds of Fed rate hike in September to 25% after Brainard speech https://t.co/9N94oI7Zhp @CNBC

    The market shares our view with only 12% priced in for a rate hike according to CME FedWatch, suggesting that investors are not well prepared for action, and even a dovish rate hike will create serious headwinds to financial markets.

    However, I believe that Janet Yellen will take the opportunity to start building the case for a December rate hike, which could continue sending the dollar higher.

    Merkel’s defeat in Berlin election shows old parties diminished. https://t.co/K2z842jZDn pic.twitter.com/jVrhKugjh5

    Merkel, by far, the most popular political leader in Berlin. We should avoid trivialising complicated dynamics pic.twitter.com/4DRHAIhQ5c

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