December 2, 2021

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Asian stock markets rise after the Federal Reserve steps down to support its purchases - E24

Asian stock markets rise after the Federal Reserve steps down to support its purchases – E24

The Fed’s decision to start phasing out crisis measures is contributing to the emergence of green arrows in Asian stock markets as well. Now “everyone” is waiting for the Bank of England.

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On Wednesday night, the US Federal Reserve confirmed that scaling back support purchases will begin this month. After this news, US stock markets rose.

The decision also does not surprisingly affect the Asian stock market in the morning twig. This is the development in the Asia Pacific region at 05.15:

  • The Nikkei 225 index in Tokyo rose 0.71 percent
  • Hong Kong’s Hang Seng rose 0.25%
  • Kospi in Seoul rose 0.46%
  • The Shanghai Composite Index is up 0.64%.
  • The FTSE Straits Times Index in Singapore is down 0.39%.
  • Sydney’s ASX 200 rose 0.38 percent

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The US Federal Reserve has begun to phase out crisis measures

– Don’t tighten

Remember that tapers (editor’s note to downsizing) don’t taper, says global marketing strategist Keri Craig at JP Morgan Asset Management. Reuters.

The strategist asserts that the Central Bank will continue to purchase securities worth about 400 billion US dollars over the next eight months, if the plan established for the first two months is maintained.

– They immediately start slowing down in November, and they have already announced another cut in December. At that rate, it will be completed in June, chief economist Harald Magnus Andresen at Sparebank 1 Markets told E24 Wednesday night.

Those interested in the macro world are now turning their attention to the Bank of England, where there are now several indications that the first rate hike is imminent. The big question is whether the rate increase will come at Thursday’s meeting, or whether the central bank will choose to wait until the mid-December meeting.

Lowest oil price in a month

It was a tough day for the price of Oil, which fell closer to $2.50 on Wednesday afternoon and evening. On Thursday morning, the price of a barrel of North Sea oil was $81.42 a barrel.

Consequently, the price of oil fell to its lowest level since October 7.

The decline came after US oil inventories rose more than expected last week. The market is still marked by the fact that talks on a nuclear deal with Iran will start at the end of this month, he writes Reuters.

On Thursday, the stage was also set for the November OPEC+ meeting. The plan is expected to continue with a gradual increase in oil production.