Japanese equity traders will be guided this week by another batch of Chinese indicators after a recent run of poor data fanned global volatility, while the United States Federal Reserve’s interest rate decision Thursday will also be in focus.
The AFP reported that uncertainty over the Fed’s next move has exacerbated jitters among investors as fears over China’s economic outlook have seen global markets swing wildly.
But volatile share prices and concerns about China and other emerging markets are seen as factors that may discourage the Fed from taking action.
Daiwa Securities said on Friday it was betting that the Fed would keep its current ultra-easy monetary policy to help prop up markets.
The AFP had reported that European stock markets fell Friday, with investors mostly wary ahead of next week’s US interest rate decision and oil company shares sliding on a forecast for crude prices to halve yet again.
“Risk appetite has certainly improved this week although we’re still seeing investors hold back a little,” said Craig Erlam, senior market analyst at Oanda trading group.
“One of the key risks all along has been the Federal Reserve and whether it will raise interest rates at the meeting next week.”
London’s FTSE 100 index of leading shares slipped 0.62 percent to close at 6,117.76 points.
Source : Punch