Global stocks, dollar stumble ahead of Fed, BOJ meetings | daily-sun.com

Global stocks, dollar stumble ahead of Fed, BOJ meetings

    26 April, 2016 12:00 AM printer

LONDON: World stocks, the dollar and oil all saw modest falls on Monday as investors locked in some recent gains ahead of central bank meetings in the United States and Japan this week.
Asia and Europe both sank as Tokyo .N225 gave back 0.8 percent of the 4 percent it had made last week and 3 and 1.5 percent falls for miners .SXPP and oil firms .SXEP pushed the FTSEurofirst 300 .FTEU3 down for a third straight day, reports the Media.
As well as signs the 3-month rally in stocks and commodities markets is cooling, a U.S. Federal Reserve rate decision on Wednesday and the Bank of Japan meeting on Thursday meant there was little incentive for traders to be bold.
Talk has been that Japan could push deeper into negative interest rate territory, while there is intense interest on where the Fed currently stands on another rate hike.
“Central banks are still the name of the game,” said Nordea’s chief strategist for developed markets, Jan von Gerich.
“There is a chance that the Fed could surprise with a bit of hawkishness on Wednesday.

The dollar hasn’t really strengthened and the S&P 500 is back near its all-time high, so they could certainly test the market.”
The dollar index .DXY was trading 0.2 percent lower on the day at 94.963. Against the euro, it dipped to $1.1270, at the weaker end of a 10-cent range it has held for a year, while the yen rose to 111.24 after a walloping at the end of last week.
Britain’s sterling, meanwhile, had hit its highest in over a month after a UK media blitz from President Barack Obama calling for Britain to stay in the European Union saw bookmakers lengthen the odds of a Brexit vote in June.
“If one of our best friends is in an organization that enhances their influence and enhances their power and enhances their economy, then I want them to stay in it,” Obama said.
The subdued start to the week for Europe’s stock markets, was further compounded by an unexpected fall in German business morale data.
The Munich-based Ifo economic institute said its business climate index, which surveys around 7,000 firms, dipped to 106.6 in April compared to a forecast of a rise to 107.


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