Earnings Dominate Ahead Of BOJ Decision
MarketPulse | Jul 28, 2016 03:53AM ET
A mixed trading session in Asia overnight has offered little direction for European investors, with futures currently pointing to a relatively flat open.
This follows a similarly flat close in the U.S. on Wednesday, as investors mulled over the latest FOMC statement after the central bank opted to leave interest rates unchanged, as was widely expected. The statement itself contained some positive language that appears to have been overlooked by the market. In fact, following the release investors pushed back expectations for the next hike rather than bringing them forward.
This is despite the Fed highlighting the strengthening labour markets, moderate rate of expansion in economic activity and the diminishing of near-term risks to the economic outlook. Once again it would seem that the Fed and the markets are some way from being on the same page. If the Fed is planning to hike this year, it needs to improve its communication or risk causing undesirable shocks in the market.
Today’s session is likely to be dominated again by earnings releases, with a large number of companies scheduled to report on the second quarter from the U.S. and throughout Europe. There’s also plenty of pieces of economic data being released throughout the day, although the majority of this is low to medium impact data that is likely to have only relatively small impacts on the markets.
Investors will also have one eye on the Bank of Japan meeting overnight tonight, with the decision due in the early hours of the morning. The BoJ is widely expected to announce further significant monetary stimulus measures to support the large fiscal stimulus package that Prime Minister Shinzo Abe announced this week.
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.