Market Snapshot – Markets Await the BOJ and the Fed

European Stock Markets Higher

Many of the European stock markets were higher for the day as the effect of the ECB extension of the QE program continues to hold sway over the markets. As for Europe, the markets were further buoyed by the stability in Catalonia where the support for staying in Spain continues to improve. This is in contrast to the uncertainty that we have been seeing in this region over the last couple of weeks ever since the calls for Independence began. Now with the support from anti-independence growing, an end seems to be in sight, atleast for the time being. This has helped the Spain stock market to move up and this general feeling of stability has helped the markets to move up. The DAX has been buoyant during the course of the day and is expected to close in a strong but steady manner.

Currency Markets Await BOJ and Fed

The currency markets are looking towards the BOJ tomorrow which is expected to make its rate announcement and also give out a statement. The other focus is on the dollar which has been holding steady in anticipation of the announcement for the next Fed Chair from Trump which can happen anytime soon. The choice seems to be between Taylor and Powell and the market would favor the hawkish Taylor and if that happens, we can expect the dollar to go on for its next round of bullish binge in the short and medium term in anticipation of quicker rate hikes.