Morning Briefing: World markets mixed following Fed minutes

Morning Briefing: World markets mixed following Fed minutes

Morning Briefing: World markets mixed following Fed minutes World markets mixed following Fed minutes
The release of the minutes of the Fed’s December meeting have caused concern for markets Thursday. The document shows that the Fed may opt to increase interest rates at a faster pace than previously expected. 

However, much of that thirst for a faster rise comes from anticipation of positive impact from Trump policy which may or may not be realized.

Asian markets closed mixed with a stronger yen putting the brakes on Japanese exporters. Seoul was also lower while most of the other major markets in the region gained, with Hong Kong up almost 1.5 per cent.

In Europe, mixed data has led to a downward trend for equities so far Thursday.

Wall Street and Toronto are expected to open lower. US manufacturing data is due.
 
  Latest 1 month ago 1 year ago
 
North America (previous session)
US Dow Jones 19,942.16 (+0.30 per cent) +4.03 per cent +16.29 per cent
TSX Composite 15,516.75 (+0.74 per cent) +2.79 per cent +20.10 per cent
 
Europe (at 5.00am ET)
UK FTSE 7,199.76 (+0.14 per cent) +6.71 per cent +17.31 per cent
German DAX 11,592.61 (+0.07 per cent) +8.50 per cent +12.44 per cent
 
Asia (at close)
China CSI 300 3,367.79 (-0.02 per cent) - 2.93 per cent -3.19 per cent
Japan Nikkei 19,520.69 (-0.37 per cent) +6.82 per cent +6.24 per cent
 
Other Data (at 5.00am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
56.41
(-0.11 per cent)
53.25
(-0.02 per cent)
1173.90
(+0.74 per cent)
U$0.7522
 
Aus. Dollar
U$0.7299


China’s curbs on currency outflow leading to offshore yuan surge
China’s yuan is becoming increasingly rate outside the country’s mainland as Beijing tightens restrictions on currency outflow.

The rules, which prohibit more than $50,000 being taken out of the country by individuals, have been in place for some time but the government has only recently begun to enforce them rigidly having focused instead on corporate outflow.

Bloomberg reports that the scarcity of offshore yuan has led to a surge in its value but some experts believe that situation will not last as a rally in the US dollar and increased supply of yuan from Hong Kong could be on the horizon.