LONDON - Stock markets world wide traded in relatively narrow ranges Thursday ahead of Congressional testimony from Fed Chair Janet Yellen that almost all traders think will cement expectations over a charge hike upcoming month.
Keeping SCORE: In Europe, France's CAC forty rose 0.one percent to 4,504 whilst Germany's DAX shed 0.one % to trade at ten,644. The FTSE 100 index of major British shares was 0.3 % larger at six,741. U.S. stocks were poised for any regular opening, with Dow futures and also the broader S&P 500 futures up 0.one percent.
YELLEN Target: Though the election of Donald Trump as the up coming U.S. president has complicated the U.S. economic outlook, financial markets still imagine that a Fed charge hike upcoming month is far more possible than not. What's more interesting to markets is when the ensuing rate hike will be and it's here that Trump's victory could impact. Yellen is due to start addressing lawmakers on the Joint Economic Committee before the opening bell on Wall Street and that could impact on trading. Trump has promised to cut taxes and raise infrastructure spending, measures that could boost economic growth and potentially spur inflation. That's seen a rally in stocks, a sell-off of U.S. bond yields and a concurrent rise in the dollar.
ANALYST TAKE: "With chances of a fee hike now at 94 percent for December, there is a risk that the Fed's leader could spark a bout of dollar weakness if she so much as hints at the possibility that the central bank won't move in December," said Chris Beauchamp, chief market analyst at IG. "Thus currencies like the yen along with the euro which have fallen hard above the past few days against the US dollar, could be due a decent bounce, with worrying consequences for equity markets in those countries."
DOLLAR: Ahead of her testimony, the dollar was reasonably steady. While the euro was up 0.2 percent at $1.0725, the dollar was 0.three percent increased against the Japanese yen at 109.19 yen.
OIL: Energy markets are retaining a close watch on the dollar's reaction to Yellen's testimony. In the run-up to it, benchmark U.S. crude rebounded, rising 67 cents to $46.26 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, which is used to price international oils, added 82 cents to $47.45 a barrel in London.
ASIA'S DAY: Japan's Nikkei was flat at 17,862.63 and Hong Kong's Hang Seng index eased 0.one percent to 22,262.88. China's Shanghai Composite Index rose 0.one % to three,208.45 and Australia's S&P/ASX rose 0.2 % to 5,338.50, when benchmarks in Taiwan, South Korea and Singapore gained.