Most importantly, this would likely be contingent upon the Fed refraining from raising rates as well as taking on a more dovish-than-expected tone, which, in turn, should place some immediate pressure on the United States dollar.
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Inflation and inflation expectations were low and the Reserve Bank had shown itself to be sensitive to the latter, he said.
“Investors are holding vigil before the Bank of Japan (BoJ) and the Federal Reserve’s announcements on Wednesday and I think everything stays quiet until then”, said Peter Cardillo, chief market economist at First Standard Financial in NY.
But while the Fed would usually be more closely watched by global markets, this time around, the BOJ will have financial players hanging on the edge of their seats.
Its shares rose 0.4% to $22.81. Some analysts believe that the central bank could cut interest rates further into negative territory.
The FOMC is set to meet for two days beginning Tuesday, culminating in an announcement, forecasts and press conference from Fed Chair Janet Yellen on Wednesday afternoon.
“As they have throughout the day across Asia, Europe and the USA, stock markets continue to tread water with moves in either direction lacking any traction as traders refuse to commit ahead of the BoJ and Fed”, Oanda analyst Craig Erlam told AFP.
Wells Fargo WFC.N shares rose 1.2 percent after the bank’s chief executive weathered criticism as he testified before a U.S. Senate panel.
ANOTHER ALLERGAN DEAL: Allergan, the maker of Botox, announced yet another acquisition as it agreed to buy liver disease drug developer Tobira Therapeutics for as much as $1.47 billion. Allergan lost 2.1 percent. The dollar rose to 101.84 yen from 101.81 yen.
Home builder Lennar Corp.(LEN) third-quarter results beat expectations, but shares slumped 4.2% after disappointing housing starts data this morning.
European stocks erased gains as banks retreated, with Italian lenders Banca Popolare di Milano Scarl and Banca Popolare dell’Emilia Romagna SC falling 4.3 per cent or more.
Gold for December delivery on the Comex division of the New York Mercantile Exchange dipped 65 cents, or 0.05%, to trade at $1,317.75 a troy ounce by 8:45AM ET (12:45GMT).
The healthcare sector .SPXHC was the best performing major S&P sector, rising 0.4 percent.
“It was really an odd market for oil today, with different drivers for the two crude benchmarks and gasoline”, said a New York-based energy broker.
On Monday, prices tacked on $7.60, or 0.58%, as the USA dollar slipped amid expectations of no rate change from the Fed. Brent crude, used to price worldwide oils, slipped 1 cent to $45.94 a barrel in London.
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Advancing issues outnumbered declining ones on the NYSE by a 1.04-to-1 ratio; on Nasdaq, a 1.12-to-1 ratio favored advancers. Brent edged 0.3 percent lower to $45.82. Tokyo’s benchmark Nikkei 225 closed down 0.2 percent and South Korea’s Kospi added 0.5 percent.
