Market News

Global markets have been responding noticeably to the Fed's statement yesterday hinting towards a December interest rate hike if market conditions continue heading in the same direction.

Asian stocks rallied early Wednesday, following a bullish lead from Wall Street and firmer crude oil prices. This was the fifth straight day of gains for energy and tech stocks.

The Reserve Bank of Australia, the central bank of the country, decided to leave the official cash rate on hold at a low of 2 per cent, pointing to an improvement in the economy over the last few months as the reason for postponing the increase at this time.

President Recep Tayyip Erdogan’s surprise win Monday sent Turkish markets rallying as investors welcomed the victory in hopes of renewed political stability in the country.

Disappointment amid the unexpected dismal PMI reports from China pushed the US Dollar lower and propped up the safe haven Japanese Yen.

The pace of China’s manufacturing sector slowed in October and Asian stocks reacted to the news by moving in and out of the red throughout the trading day.

It is going to be a crucial week for 3 currencies: the USD, the GBP and the AUD. All have Central Banks making their monthly reports and decisions. Get the economic calendar for the week of November 2, 2015 here.

Friday’s economic releases may throw a wrench in the Fed’s hawkish rate hike prediction issued after its last policy meeting Wednesday.

The Bank of Japan held off on expanding stimulus on Wednesday, even as slumping exports and falling oil prices threaten a hoped for steady growth.

Earlier, the US Dollar had remained close to a 2½ month peak versus the common currency Euro as FX traders reconsider the likelihood of a 2015 rate hike from the Fed.

The Fed seems back on track again for an interest rate hike in December. At its policy meeting Wednesday, the central bank gave clear indication that the possibility of a rate hike by the end of 2015 is a strong one.

The global oil glut continues to plague oil prices, bringing them down to multi-week lows in a third straight session on Tuesday.

FX traders had been awaiting the release of UK growth data to judge the likely timing of a rate hike from the Bank of England. Expectations were high that the data wouldn’t at least be flat, and not show any slippage.

While all eyes are focused on the FOMC policy meeting scheduled to begin Wednesday morning and the Bank of Japan meeting on Friday, Japanese stocks turned southwards Tuesday while JPY strength gained against the dollar and commodities, especially crude and copper slumped worldwide.

The US Dollar Index edged away from its recently struck 2½ month peak; however losses were tempered by rising risk appetite.