Global equity markets rebound on hopes US and China will resume talks
The Bank of Japan keeps interest rate targets unchanged, causing the yen to slip; the US Fed and Bank of England rate meetings are now the market focus
New York — Global equity markets rebounded on Tuesday on a report that the US and China hoped to resume talks to defuse a budding trade war, while the dollar jumped against the yen after the Bank of Japan (BOJ) said it intends to keep interest rates low. BOJ reassurances that it will maintain its super-easy monetary policies for an "extended period of time" pushed the yen down and global bond yields lower. The dollar firmed 0.75% against the yen, putting it on pace for its best day in nearly three weeks, after BOJ said it would keep rates "very low" in comments that brought some relief to a market that had braced for bigger changes. While the benchmark 10-year Japanese government bond dropped five basis points after the announcement, investors await meetings by the US Federal Reserve on Tuesday and Wednesday, and the Bank of England on Thursday. "We still have a decent amount of news ahead of us," said George Gonçalves, head of US rates strategy at Nomura Securities International. S...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.