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20 September 2017
 |
| financial markets (The Total Investment & Insurance Solutions) |
Global stock markets were little changed Wednesday as investors took to
the sidelines ahead of the U.S. Federal Reserve's announcement of the results
of its meeting. The Total Investment
& Insurance Solutions
KEEPING SCORE: In Europe, Germany's DAX was
down 0.1 percent at 12,552 while the CAC 40 in France was steady at 5,240. The
FTSE 100 index of leading British shares was stable at 7,272. Wall Street was
poised for a similarly flat opening with Dow futures and the broader S&P
500 futures unchanged.
FED WATCH: At the end of its two-day meeting
on Wednesday, the Federal Reserve is widely expected to announce it will begin
to reduce its enormous bond portfolio, which reached $4.5 trillion. The move
will gradually increase long-term borrowing rates. While the decision to shrink
the Fed's balance sheet is much expected, when and how the Fed will manipulate
its target for short-term interest rates is less clear. After leaving its
benchmark rate at a record low for seven years after the 2008 crisis, the Fed
has modestly raised the rate four times since December 2015 to a still-low
range of 1 percent to 1.25 percent.
ANALYST TAKE: "Details on balance sheet
reduction will be of interest, but crucially the committee will extend its rate
outlook in 2020, and this could give us a good sense of the end-point for the
interest rate in this current tightening cycle," said Chris Beauchamp,
chief market analyst at IG.
WORLD ECONOMY: The Organisation for Economic
Co-operation and Development maintained its global growth forecast for this
year at 3.5 percent and next year's but lifted next year's to 3.7 percent. It
also now thinks that the eurozone will grow by 2.1 percent this year, 0.3
percentage point more than its previous prediction in June. That means the OECD
is expecting eurozone growth this year to match the U.S. rate, which it left
unchanged. And next year, it's forecasting growth of 1.9 percent for the
eurozone, 0.1 percentage point more than previously thought, but below its 2.4
percent projection for the U.S. The big three eurozone economies — Germany,
France and Italy — all saw upward revisions. The Total Investment & Insurance Solutions
ASIA'S DAY: Japan's Nikkei 225 added 0.1
percent to 20,310.46 and South Korea's Kospi edged down 0.2 percent to
2,412.20. Hong Kong's Hang Seng index added 0.4 percent to 28,127.80. China's
Shanghai Composite Index gained 0.3 percent to 3,366.00. Australia's
S&P/ASX 200 fell 0.1 percent to 5,709.10.
OIL: Benchmark U.S. crude rose 1.1 percent to
$50 a barrel on the New York Mercantile Exchange while Brent crude, used to
price international oils, advanced by the same rate to $55.77 per barrel in
London.
CURRENCIES: The euro was up 0.1 percent at
$1.20 while the dollar fell 0.2 percent to 111.31 yen.The Total Investment & Insurance Solutions
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