The Federal Reserve’s Open Market Committee, which last raised borrowing costs in December 2015 to end seven years of near-zero rates, meets on September 20-21, with a news conference by chair Janet Yellen due on the Wednesday.
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Switzerland’s central bank on Thursday held its negative interest rates at record low levels despite mounting criticism that the policy has hurt banks and pensions. The TAIEX closed 0.4 percent lower at 8,902.30 on Wednesday. They were rewarded with gains of nearly 20 percent though the end of August, based on Bank of America Corp.’s bond indexes.
Metropolitan Bank & Trust Co. rose 1.8 percent to P86.90, while food manufacturer Universal Robina Corp. gained 1.5 percent to P183.
Reports on Thursday showed that US industrial production contracted more than forecast, while retail sales unexpectedly slid, sending the odds for a rate increase from the US Federal Reserve next week to less than 20 percent.
Asian stocks wavered on Thursday as investors grappled with the seemingly diminishing ability of major central banks to stimulate growth, while a tumble in crude oil inflamed already heightened risk aversion.
The euro was also flat at $1.1243, poised for a 0.1% weekly gain.
The Australian dollar traded at $0.7459, following a weaker-than-expected employment report.
The dollar index, which tracks the greenback against a basket of six major peers, also remained steady at 95.308, and set to end the week little changed. Most recently, a plethora of USA economic data was just released on Thursday, mostly worse than expected, which generally did not bode well for the prospects of a United States rate hike by an already skittish Fed.
Brent crude limped up 0.5 per cent to $46.07 a barrel after dropping 2.6 per cent on Wednesday when data showing large weekly builds in USA petroleum products offset a surprise draw in crude stockpiles.
After charging through the second quarter, the US consumer is showing signs of exhaustion at the start of the second half of 2016, with core sales falling 0.1 percent in August.
Spot gold fell to a two-week low, trading down 0.7 per cent to $1,313.31 an ounce.
Hong Kong shifted in and out of negative territory through the day and was up 0.1 percent in the afternoon while Sydney added 0.4 percent.
Real interest rates are far lower now than during bouts of deflation in the past – and that is the message the BOJ should focus on selling, some analysts say, before easing further. The yield climbed to 2.5 percent on Thursday, the highest level since June 24.
Shares of Apple jumped 3.4 per cent to $111.65, helping USA stocks recover from losses the previous day, on reports of strong demand for the new iPhone. Chipmaker Skyworks Solutions jumped 6.38 percent and was the top percentage gainer on the benchmark S&P index.
The extra yield that investors demand to own 30-year rather than five-year obligations, a measure of the yield curve, rose for the ninth straight day.
Brent crude limped up 0.6 per cent to $46.11 a barrel after dropping 2.6 per cent on Wednesday when data showing large weekly builds in US petroleum products offset a surprise draw in crude stockpiles.
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These doubts have pushed yields on benchmark USA bond yields to 1.7 per cent at present, from a record closing low of 1.366 per cent set in July, while Japanese 10-year bond yields are now trading at minus 0.04 per cent, compared with their July low of minus 0.29 per cent.
