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Market Review

The official Xinhua news agency said in a commentary that China should apply more differentiated property policy based on regional conditions as home prices surge in some cities and as concerns grow that the market may be overheating in some areas. The Bank of Japan is expected to further ease its already loose policies at this week's meeting, as it struggles to recover from chronic stagnation and reduce speculation that it is running out of options.

In a joint statement, 23 out of 28 EU countries have urged the European Commission to delay by one year the application of the new rules on “packaged retail and insurance-based” investment products. In a report, Destatis said that German Producer Price Inflation fell last month to a seasonally adjusted annual rate of -0.1%, from 0.2% in the preceding month.

Amid mixed messages sent to markets by several Fed officials in the last month, there is a sentiment that the dovish side of the U.S. central bank will prevail. Official data showed on Tuesday that U.S. housing starts fell more-than-expected to 1.142M, from 1.212M in the preceding month. Meanwhile, the number of building permits issued unexpectedly fell 0.4% to a seasonally adjusted 1.139 million units from 1.144 million units.

Currencies: The dollar was mostly unchanged against the other major currencies, after the release of weak U.S. housing sector data and as investors awaited the Fed and BOJ’s highly-anticipated policy statements. The EURUSD traded lower between $1.1213 and $1.1159. The GBPUSD traded lower between $1.3065 and $1.2948. The USDJPY traded lower between ¥102.06 and ¥101.55.

Crude oil: Oil prices recovered on Tuesday from six-week lows as OPEC and non-member producers, including Russia, are considering a deal to stabilize the market by at least freezing output, although important details such as the timing and baseline for any deal have yet to emerge. On the ICE future Exchange, North Sea Brent crude traded higher between $45.09 and $46.30 On the New York Mercantile Exchange, U.S. light crude oil traded higher between $43.08 and $44.38.

Gold: Gold prices were steady in recently familiar territory, with investors sitting tight before the Federal Reserve and Bank of Japan highly anticipated policy decisions. On the COMEX division of the New York Mercantile Exchange, gold traded higher in a narrow range between $1311.88 and $1317.75 an ounce.

Indices:  Asia stocks were mixed in nervous trade, as investors awaited the policy meetings of Bank of Japan and the Federal Reserve due on Wednesday. At the close in Tokyo, the Nikkei 225 declined 0.16%. At the close in China, Shanghai Composite edged down 0.08%.

European stocks were mixed, as investors remained cautious ahead of the Federal Reserve and Bank of Japan’s policy meetings. At the close in Frankfurt the DAX added 0.20%. At the close in Paris, the CAC40 dropped 0.11%. At the close in Madrid, the IBEX 35 lost 0.16%. Finally, at the close in London the FTSE100 advanced 0.20%.

Wall Street was slightly higher in cautious trade as investors took positions ahead of key monetary policy decisions. At the close, the Dow Jones industrial average lost 0.07%. The S&P 500 added 0.04% and the NASDAQ composite gained 0.12%.

Economic Calendar
Wednesday 21st September 2016:

Time

Currency

Events

Forecast

Previous

Tentative

JPY

Monetary Policy Statement

 

 

Tentative

JPY

BOJ Press Conference

 

 

14:30

USD

Crude Oil Inventories

 

-0.6M

18:00

USD

FOMC Economic Projections

 

 

18:00

USD

FOMC Statement

 

 

18:00

USD

Federal Funds Rate

<0.50%

<0.50%

18:30

USD

FOMC Press Conference

 

 

Posted: 9/21/2016 7:09:53 AM by Global Administrator | with 0 comments


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