Forex Marketz Daily Forex News – Fully Markets Update
The Asian and Pacific Rim benchmarks were quietly mixed by Wednesday afternoon, Hong Kong time. Asian traders are waiting on key central bank decision due over the next two weeks starting with tomorrow’s European Central Bank monetary policy and interest rate announcement.
The Asian benchmark, in Japan, the Nikkei 225 was up 0.86 percent. The broader Topix index, in Tokyo, was also higher. Shares on the Topix added 1.4 percent.
Across the Korean Strait, the Kospi composite index was up 0.74 percent and, in the Down Under, the Australian S&P ASX 200 was up about 0.17 percent.
The Chinese stock indices fell lower by the afternoon as traders were cautious. The Shenzhen composite lost 0.24 percent and the Shanghai composite was virtually flat. Shares on the Shenzhen component lost 0.45 percent.
In Hong Kong, the Hang Seng gained 1.35 percent.
Asian Traders wait on the ECB Decision due on Thursday
Traders are now waiting on tomorrow’s European Central Bank’s monetary policy and rate announcement. The ECB is expected to deepen its negative interest rate policy and introduce other monetary stimulus.
Traders are expecting that the ECB will release a monetary package that includes a rate cut. They also hope for a pledge to keep rates low for longer and new measures supportive of commercial banks over the side effects of prolonged negative rates.
This ECB decision could set the tone for next week’s U.S. Federal Reserve and the Bank of Japan monetary policy decisions. The Bank of Japan could discuss the expansion of its monetary stimulus program as the ongoing trade war continues between the world’s two largest economies.
A lot of the positive sentiment in the financial markets comes from the restart of trade talks between China and the United States. The two economic giants are scheduled to meet in October.
However, optimism for a trade deal was hampered after comments from White House trade adviser Peter Navarro. He is urging patience and said that the trade talks must be allowed to “take its course.”
