On Friday, yields gained some ground after Boston Fed President Eric Rosengren (http://www.marketwatch.com/story/ feds-rosengren-wanted-interest-rate-hike-in-september-to-sustain-the-economy-2016-09-23) said he had wanted to raise interest rates this week to help prolong the economic expansion, explaining why he was one of three dissenters from the Fed policy-committee decision to hold rates steady. 21, 2016, after Japan’s central bank rejiggered its stimulus po.
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The Nasdaq surged to its second straight record Thursday as USA stocks again posted strong gains following the Federal Reserve’s decision to keep interest rates low.
Aside from the potential for Monday’s USA presidential debate having a big impact on the election, “there’s really nothing on the horizon until earnings season, and the Fed has kind of cleared the way for accommodative policy and low interest rate environment which bodes well for stocks”, said Alan Lancz, president of investment advisory firm Alan B. Lancz & Associates in Toledo, Ohio.
A report from the National Association of Realtors is expected to show existing home sales rose to a 5.45 million-unit rate in August from 5.39 million units in July.
Allied to a reduction in the number of rate rises it forecasts in 2017 and 2018, that was enough to knock the greenback to a almost 4-week low of 100.10 yen in Asian trading.
“Market is not convinced that the BOJ is doing enough to boost inflation expectations”.
“It appears to be stabilizing at lower levels”, Marc Chandler, global head of currency strategy at Brown Brothers Harriman, said in a Thursday blog post highlighting currency moves after the Fed’s Wednesday announcement.
“Yesterday’s new (BOJ) framework is not new easing”. On Wednesday, the CAC 40 climbed 0.8 percent, the DAX gained 0.7 percent and the FTSE rose 0.2 percent. “I think it more represents a softening stance towards banks and other financial institutions likely due to concerns and backlash over profitability and financial stability”, Yeo said.
Tokyo was closed for a public holiday.
The dollar index, which measures the greenback against six major currencies, was down 0.14 per cent at 95.881 in late trading.
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KEEPING SCORE: Japan’s benchmark Nikkei 225 index dipped 0.1 percent to 16,786.89 while South Korea’s Kospi crept up 0.2 percent to 2,053.50. Among the bulls, Old Mutual Global Investors’ Diego Parrilla told Bloomberg this month that in a world of monetary policy “without limits”, where low or negative interest rates prevail and central banks print lots of money, prices will likely soar to a record within five years. The S&P 500 was up 15.01 points, or 0.69 per cent, at 2,178.13.
