Japan’s currency may face continued downward pressure if policymakers move too slowly on interest rate hikes, according to the head of the Asian Development Bank . Rate Gap with US Driving Yen Weakness ADB President Masato Kanda highlighted that the wide interest rate differential between Japan and the US remains the key driver behind yen weakness. Investors continue to favour the US dollar due to higher yields The Bank of Japan risks being seen as “behind the curve” on inflation As a result, the yen struggles to strengthen even when global risk sentiment improves . BOJ’s Slow Response Raises Market Concerns Despite inflation hovering around target levels for years, the BOJ has maintained a cautious policy stance to avoid damaging Japan’s fragile economic recovery. However, markets may react negatively if: The BOJ delays rate hikes further Investors lose confidence in Japan’s poli...
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| Wall Street market back on track as oil gain |
Brent crude hovered above $40 a barrel on Wednesday.
However, industry watchers remain skeptical of a sustained recovery in prices due to the oversupply.
Reuters reported that at 9:37 a.m. ET, the Dow Jones industrial average was up 45.78 points, or 0.27%, at 17,009.88, the S&P 500 was up 6.14 points, or 0.31%, at 1,985.4 and the Nasdaq Composite index was up 7.63 points, or 0.16%, at 4,656.46.
Markets worldwide were lower on Wednesday as investors fretted about global economic conditions ahead of central bank meetings on monetary policies. This was largely due to the disappointing data coming out from China.
US economy may seems to have find its footing with the recent data and reports but Asia and Euro zone are not looking so positive with a faltering growth outlook.
According to a news report from Reuters, the European Central Bank, which will meet later this week, is expected to increase its stimulus program. While the U.S. Federal Reserve is not expected to raise interest rates at its meeting on March 15-16, the central bank has said it is on track to raise rates gradually this year.
The gainers on New York stock exchange outnumbered decliners by 2,076 to 542 while 1,576 counters rose and 582 fell on the Nasdaq.
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