Asian Stocks Retain Their Strong Position with Looming Fed Rate Hike
By Anatol Thomas
The stock market has been facing majestic ups and downs, since the election of Donald Trump. While the Trump rally has faded away, the stock market continues to be in focus with the optimistic approach from the US Federal Reserve. Earlier, the US tech stocks were having a hard time, due to the increased pressure on increasing the earnings.
The stock markets in Asia gained momentum on Tuesday after overcoming some losses earlier. The smaller gains show that the investors continue to have a positive outlook on the economy in general.
The monetary policy meeting of the Federal Reserve is expected to start sooner. Previously, the Fed has commented that the slowing down of the economy is not a cause for concern. Following an interest rate hike a few months earlier, the upcoming federal policy meeting has gained lots of attention. The market is betting that the Fed would propose at least quarter point increase in the interest rate after the two-day meeting.
Nikkei index closed in at 225, losing just 0.01%. ASX Australian index also gained 1.2%, as the markets were closed on Monday, on account of the holiday. The regional markets were having a good time with about 0.5% increase.
In forex news, US dollar held steady against major Asian currencies. It rose slightly against the British Pound after the volatility, due to the impending presidential election. The Bank of Canada announced hawkish news on Monday, following which Canadian Dollar reached its two-month high, against the USD.
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