|
 European stock markets turned positive after a weak start, helped by
some encouraging broker upgrades, with Switzerland's SMI equity
index hitting the 9,000-point mark for the first time since late
2007. <.SSMI>
U.S. equity futures pointed to a flat opening on Wall Street <SPc1>
<DJc1> while oil prices recovered a touch but stayed near four-year
lows on signs of disagreement between OPEC members before a meeting
next week. [O/R]
The Fed is expected to raise interest rates at some point in 2015 as
the U.S. economic recovery broadens, but markets will be looking
closely at the minutes due later in the day for any signs of when
the first hike will happen.
Petr Krpata, currency strategist at ING, said the Fed minutes were
likely to retain the hawkish tone of the central bank's statement
following its October meeting.
In contrast, the Bank of Japan is expected to keep policy very loose
for a much longer period, and last month announced it was expanding
its already-huge monetary stimulus programme in an effort to spur
the economy and boost inflation.
The BoJ kept monetary policy unchanged on Wednesday with Governor
Haruhiko Kuroda telling a news conference the bank's stimulus was
exerting its intended effect, just two days after data showed Japan
unexpectedly slipping back into recession.
The yen fell as low as 117.655 to the dollar, its weakest since
October 2007, and was last close to that low at 117.605, down 0.7
percent on the day.
"The yen has not been so weak against the dollar in real terms --
that is, if you factor in inflation -- since the 1980s," said Ugo
Lancioni, head of currency management at investment house Neuberger
Berman in London.
"There is strong political will to weaken the yen further but it is
already at extremely low levels, and we struggle to see the yen
substantially weaker than where it is now."
[to top of second column] |
GERMAN STOCKS UP
Germany's DAX equity index, was up 0.6 percent at a 1-1/2 month
high, putting it on track for its fifth consecutive day of gains --
the index's best run since early September -- after a run of better
data from Europe's biggest economy.
"I think we are just waiting for the Fed really. The DAX is leading
the way again, but we are just drifting higher," said ETX Capital's
Head of Index & Equity Market Making Mark Priest.
The FTSEurofirst 300 index of top European shares was up 0.3 percent
at 1,364.41 points, having fallen to a low of 1,355.67 earlier in
the session.
The STOXX Europe Basic Resources index, however, fell 0.9 percent,
the worst sectoral performer in Europe after China's iron ore
futures fell nearly 5 percent to a record low.
German Bund yields edged up after Bank of England minutes showed two
policymakers again voted for rate hikes despite a weaker economic
outlook -- a hawkish stance that drove some in the market to
anticipate less caution from the Fed as well.
Ten-year Bund yields, which set the standard for euro zone borrowing
costs, rose 2 basis points to 0.82 percent, having traded as low as
0.79 percent earlier.
(Additional reporting by Nigel Stephenson, Marc Jones, Anirban Nag
and Atul Prakash in London, Hideyuki Samno in Tokyo and Blaise
Robinson in Paris; Editing by Catherine Evans)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |
