Global markets showed positive movements on Tuesday as the US Federal Reserve commenced its policy meeting and Japan made its first interest rate hike in 17 years.
US and European shares edged higher during the day, with US stock markets showing slight gains midday and major European markets closing marginally higher.
The Federal Open Markets Committee began a two-day discussion that is anticipated to maintain current interest rates. However, investors are eagerly awaiting Wednesday’s update to gain insights into the Fed’s latest stance.
While expectations for a rate cut later this year persist, recent inflation reports exceeding predictions have created doubts about the consensus for a June easing.
London-based Unilever experienced a more than three percent increase following the announcement of plans to separate its ice cream operations and reduce thousands of jobs.
In Germany, investor confidence surged above projections in March, driven by expectations of an interest rate cut by the European Central Bank, which lifted continental shares.
The Bank of Japan’s decision to raise rates marks a significant move after 14 years, shifting out of negative territory. The policy change was well-received by Japanese stock market investors, resulting in a more than one percent decline in the yen against the dollar on policymakers’ indication of no further hikes in the near future.
The adjustment in Japan’s monetary policy comes at a time when rising prices and wages have allowed for a pivot from a policy stance that was unique in the global economy.
US – Dow: Up 0.7 percent at 39,045.92 points
US – S&P 500: Up 0.3 percent at 5,164.21
US – Nasdaq Composite: Up 0.1 percent at 16,116.29
London – FTSE 100: Up 0.2 percent at 7,738.30
Paris – CAC 40: Up 0.7 percent at 8,201.05
Frankfurt – DAX: Up 0.3 percent at 17,987.49
Tokyo – Nikkei 225: Up 0.7 percent at 40,003.60
Hong Kong – Hang Seng Index: Down 1.2 percent at 16,529.48
Shanghai – Composite: Down 0.7 percent at 3,062.76
The dollar/yen exchange rate rose to 150.80 yen from 149.16 yen, with the euro/dollar rate falling to $1.0861 from $1.0873
With West Texas Intermediate and Brent North Sea Crude seeing price upticks, the expectation for potential further changes in global markets is anticipated.
