Morning Briefing: Fed awaited, Nikkei jumps on Abe stimulus

Morning Briefing: Fed awaited, Nikkei jumps on Abe stimulus

Morning Briefing: Fed awaited, Nikkei jumps on Abe stimulus Fed awaited, Nikkei jumps on Abe stimulus
The Fed’s latest monetary policy meeting concludes Wednesday with a decision on interest rates due later. This is little expectation of a rise but markets will be looking for a steer on when, or if, there will be a rate rise this year. September or December are still prospects.

Meanwhile in Asia, Tokyo’s Nikkei has surged as new media reports suggest a higher-than-expected stimulus package is on the way. Initial reports were for 6 trillion yen, then up to 20 trillion and the latest is 28 trillion yen – U$265 billion. Major Asian indexes closed higher with the exception of China.

European markets are also higher ahead of the Fed and on regional earnings and the stronger lead from Asia.

Wall Street and Toronto are expected to open higher.
 
  Latest 1 month ago 1 year ago
 
North America (previous session)
US Dow Jones 18,473.75 (-0.10 per cent) +6.17 per cent +5.15 per cent
TSX Composite 14,550.00 (+0.36 per cent) +6.28 per cent +3.92 per cent
 
Europe (at 4.30am ET)
UK FTSE 6,738.78 (+0.22 per cent) +12.65 per cent +3.59 per cent
German DAX 10,326.00 (+0.76 per cent) +11.41 per cent -6.61 per cent
 
Asia (at close)
China CSI 300 3,218.24 (-1.57 per cent) +3.13 per cent -15.72 per cent
Japan Nikkei 16,664.82 (+1.72 per cent) +8.85 per cent -18.11 per cent
 
Other Data (at 4.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
44.39
(-1.07 per cent)
42.65
(-0.63 per cent)
1318.50
(-0.17 per cent)
U$0.7578
 
Aus. Dollar
U$0.7491

 
Oil at 3-month low but World Bank raises forecast
Oil prices have slipped to their lowest in 3 months but the World Bank has revised its 2016 forecast higher from its previous reading in April. The estimate however is not much different from prices today, at $43 per barrel, as oversupply remains an issue.

The outlook highlights higher prices and some supply issues earlier in the year including the impact of the Fort McMurray wildfires; but output from OPEC countries is increasing even as non-OPEC producers pull back.