Asian markets are mostly lower, as they brace for outcomes from the various central bank meetings this week. Investors are on the look-out for the wordings of the Fed’s policy statement today – having already priced in a rate hike announcement today.
The Fed is widely expected to raise interest rates for the second time this year after a move in March, but the bigger question for investors is the outlook for future monetary tightening amid an ongoing economic expansion.
Trade frictions between the United States and China are also back on radar ahead of Friday, by when Washington has said it will release a list of some $50 billion worth of Chinese goods that will be subject to a 25 percent tariff. Given this,
Chinese equities are broadly weaker. ZTE, which started trading again today after the suspension, was down 40% on the Hong Kong markets, as Congress looks to reimpose penalties. The Japanese market is extending gains from the previous session following the mostly positive cues from Wall Street and on a weaker yen. The Australian market is modestly lower, mining and banking being the major losers.
Bonds and dollar are largely unchanged, as investors look forward to the Fed’s announcement. Oil under pressure in the post settlement trade after API reported a surprise inventory build.
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