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Category: Business, Economics and Finance / Company News / Money and Monetary Policy / Markets / Currency / Futures / Stockmarket

Investors keep to sidelines ahead of US, BoJ decisions

Wednesday, 21 Sep 2016 07:03:19 | Thuy Ong

Japan's export-oriented economy has been hit by a slump in orders from its major European market. (Kazuhiro Nogi: AFP)

Investors kept to the sidelines overnight ahead of the US Federal Reserve's decision on interest rates due out tomorrow.

Markets at 8:22am (AEST)

  • ASX SPI 200 futures -0.2% to 5,281
  • AUD: 75.6 US cents, 58.2 British pence, 76.8 Japanese yen, 67.7 euro cents, $NZ1.032
  • US: Dow Jones +0.1% to 18,130, S&P 500 flat at 2,140, Nasdaq +0.1% to 5,241
  • Europe: FTSE +0.3% to 6,831, DAX +0.2% to 10,394, CAC 40 -0.1% to 4389

The US central bank is not expected to raise rates but its statement will be carefully read for clues as to when it will.

Gains in the healthcare sector offset weakness in energy stocks. Gilead Sciences jumped 3.5 per cent, while Allergan lost 2.7 per cent after announcing it will pay $US1.7 billion to buy Tobira Therapeutics.

Among the energy companies, Exxon lost 1.5 per cent after a story in the Wall Street Journal indicated the US Securities and Exchange Commission was investigating how the company valued its assets as oil prices tanked.

The Bank of Japan is expected to further ease monetary policy when it winds up its meeting today, according to a Reuters poll of economists.

"It's the calm before a potential storm and, while so many in the markets will be talking about the high profile split between Angelina and Brad, the real focus is how to deal with the Bank of Japan's "comprehensive review" of monetary policy," said Chris Weston, market strategist at IG, in a note to clients.

"There is debate in the market around whether the BoJ will take the deposit rate deeper into negative territory."

In currency trade, the Australian dollar came off its overnight low against the greenback to hover at a one week high of 75.5 US cents.

AustraliaPlus


 

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