Morning Briefing: Fed in focus, markets jump on BoJ

Morning Briefing: Fed in focus, markets jump on BoJ

Morning Briefing: Fed in focus, markets jump on BoJ Fed in focus, markets jump on BoJ
The Fed will announce its interest rate decision Wednesday and there are few analysts predicting any change but the words of the press conference will be scrutinized for expectation of a December rise.

Meanwhile, the Bank of Japan has announced some changes to its monetary policy to target interest rates and inflation. Interest rates have also been held.

The news subdued the yen, helping Japan’s exporters and boosting the Nikkei by almost 2 per cent. Elsewhere in Asia, despite some disappointment at the BoJ’s announcement, markets closed higher.

European indexes are also positive so far, following the BoJ and ahead of the Fed.

Wall Street and Toronto are expected to open higher.
 
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North America (previous session)
US Dow Jones 18,129.96 (+0.05 per cent) -2.28 per cent +10.65 per cent
TSX Composite 14,521.98 (+0.18 per cent) -1.13 per cent +5.39 per cent
 
Europe (at 4.30am ET)
UK FTSE 6,857.72 (+0.39 per cent) -0.02 per cent +12.26 per cent
German DAX 10,492.27 (+0.95 per cent) -0.49 per cent +5.47 per cent
 
Asia (at close)
China CSI 300 3,266.64 (+0.28 per cent) -2.92 per cent -1.26 per cent
Japan Nikkei 16,807.62 (+1.91 per cent) +1.58 per cent -6.99 per cent
 
Other Data (at 2.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
46.69
(+1.77 per cent)
44.94
(+2.02 per cent)
1322.70
(+0.34 per cent)
U$0.7596
 
Aus. Dollar
U$0.7591

Oil prices rebound 2 per cent on draw data
Data suggesting that there was a larger than expected draw down on US oil stocks has helped boost prices by 2 per cent overnight. A larger demand from Japan has also positively impacted prices.

The gains are likely to be short-lived though as the underlying data still points to a global supply glut which may or may not be boosted by a meeting of oil producers this month.