{"id":11624,"date":"2020-08-03T02:32:50","date_gmt":"2020-08-03T02:32:50","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=11624"},"modified":"2020-08-03T02:32:50","modified_gmt":"2020-08-03T02:32:50","slug":"global-markets-asian-stocks-rise-dollar-languishes-near-two-year-lows-on-fed","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=11624","title":{"rendered":"GLOBAL MARKETS – Asian stocks rise, dollar languishes near two-year lows on Fed"},"content":{"rendered":"

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By: Reuters<\/a> | Sydney |
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tPublished: July 30, 2020 10:44:45 am\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\"coronavirus,

Asian stocks were boosted by the promise of ultra-easy monetary policy globally as the US Federal Reserve left interest rates near zero to support the country\u2019s virus-battered economy, sending the dollar to a two-year trough.<\/p>\n

All Fed members voted to leave the target range for short-term rates between 0% and 0.25%, where it has been since March 15 when the virus was beginning to hit the nation.<\/p>\n

The unchanged policy setting together with a pledge the Fed would use its \u201cfull range of tools\u201d if needed boosted risk appetite overnight with all three Wall Street indexes finishing firmer.<\/p>\n

The confidence extended in Asia where Japan\u2019s Nikkei and South Korea\u2019s KOSPI were up 0.3% each, Australia\u2019s main index climbed 0.7% and Hong Kong\u2019s Hang Seng index rose 0.2%.<\/p>\n

Chinese shares were a shade firmer, leaving MSCI\u2019s broadest index of Asia Pacific shares outside of Japan up 0.4%.<\/p>\n

\u201cThere is no doubt that the Fed\u2019s large presence in markets has provided risk assets with a backstop to stop a tightening in financial conditions,\u201d said Perpetual analyst Matthew Sherwood.<\/p>\n

\u201cBut they (Fed) don\u2019t have any tools to engineer a recovery, which means that fiscal policy will need to remain in place to support household incomes, especially as unemployment could increase in the months ahead as the true impact of the shock on the labour market is revealed.\u201d<\/p>\n

Indeed, negotiations for a new coronavirus<\/a> relief package in the United States<\/a> have become a pressing issue for investors.<\/p>\n

US President Donald Trump said on Wednesday that his administration and Democrats in Congress were still \u201cfar apart\u201d on a new coronavirus relief bill.<\/p>\n

Policymakers, and investors, are also keeping a close eye on the coronavirus trajectory with many countries, including the United States, still reporting record number of COVID-19<\/a> cases and deaths each day.<\/p>\n

In currencies, the biggest mover was the greenback.<\/p>\n

The dollar has been tumbling on expectations the Fed will continue its ultra loose monetary policy for years to come and on speculation it will allow inflation to run higher than it has previously indicated before raising interest rates.<\/p>\n

Wednesday\u2019s Fed move sent the dollar index crashing to 93.17, the weakest since June 2018. It recouped some of the losses and was last at 93.398.<\/p>\n

The greenback weakness supported the euro at $1.1792. The common currency had hit a two-year high of $1.1807 and is on course to post its biggest monthly gain in 10 years, having risen about 5% so far this month.<\/p>\n

Sterling also held firm against the dollar at $1.2998, just below Wednesday\u2019s 4-1\/2-month high of $1.3013.<\/p>\n

In commodity markets, oil prices rose after a steep drop in US crude inventories, but another record day for coronavirus cases worldwide kept gains in check.<\/p>\n

Brent crude futures were up 4 cents at $43.79 a barrel. US crude futures inched up 1 cent to $41.28.<\/p>\n

Spot gold was off 0.4% at $1,962.6 an ounce.<\/p>\n

\ud83d\udce3 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress)<\/a> and stay updated with the latest headlines<\/em><\/strong><\/p>\n

For all the latest Business News<\/a>, download Indian Express App.<\/a><\/p>\n<\/p><\/div>\n

Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By: Reuters | Sydney | Published: July 30, 2020 10:44:45 am A man walks past an electronic board showing Japan\u2019s Nikkei 225 index and currency exchange rate at a securities firm in Tokyo Friday, July 10, 2020. (AP Photo\/Eugene Hoshiko) Asian stocks were boosted by the promise of ultra-easy monetary […]<\/p>\n","protected":false},"author":1,"featured_media":11625,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[29],"tags":[],"class_list":["post-11624","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kolkata"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/08\/AP-japan-stock-markets-759.jpgw759.jpeg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/11624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11624"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/11624\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/11625"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}