Asian stocks rise overnight after digesting information from the Fed
It was a bit of a rollercoaster night in US equities markets yesterday. The Federal Reserve kept rates unchanged but also amended their projections on the future outlook for interest rates. Previously, it was said that the Fed members thought there could be another hike later in the year this has now been revised down to none. The US Dollar also fell in the aftermath as the central bank are taking a more patient stance. Equities markets in the Asia Pac region traded higher overnight, ASX (0.03%), Shanghai Comp. (0.35%) and Nikkei 225 (0.20%).
As the greenback sold off commodities pushed higher. Gold was one of the biggest beneficiaries as it moved to hit $1319/oz this morning when just yesterday the precious metal was struggling at $1305/oz.
Copper also moved higher and the industrial metal looks set to hit the previous wave high at $2.97/lb as this morning we start the EU session at $2.95//lb. Sticking with base metals, iron ore suffered yesterday as a Brazilian court revealed that Vale can reopen a mine that was closed due to safety issues.
Oil markets also had some good news yesterday as the most recent DoE release showed a much bigger draw than was expected. Spot WTI trades at $59.81/bbl after just printing above $60.00/bbl overnight.
Today we are on the lookout for the SNB, Norges Bank and BoE rate decisions, EU economic bulletin, UK retail sales, Philly Fed manufacturing index and Japanese CPI.