Asian stocks edge up as Fed-rate frets build up, Europe opens lower


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Asian stocks edge up as Fed-rate frets build up, Europe opens lower

On Tuesday, the 18th of June 2019, a stack of Asian stocks posted gains, but upstream momentums were largely capped by cautious moves of the investors ahead of a US Federal Reserve Policy Decision, scheduled to be released by tomorrow, (June 19th), GMT.

18.30, which might have witnessed a first US rate cut in years, however, sources with direct knowledge with the subject matter had revealed yesterday (June 17th) that Fed would likely to keep the interest rate unchanged given the figures of inflation indicators and a Trump-Xi meeting ahead, while it might lay the groundworks of an interest rate cut later this year.

While a bunch of Asian stocks posted gains on Tuesday (June 18th) midday trading hours, crude oil price appeared to be squeezing following a stubborn growth of US inventories despite geo-political worries. None the less, European stock markets had opened lower, but outlook seemed to be mixed by late-morning trading hours, while London’s FTSE 100 was flatlined, and Germany’s DAX alongside regional Pan-European STOXX 50 futures were down by 0.2 percent so far.

In Asia, the MSCI’s broadest index of Asia-Pacific shares rose by 0.6 percent, while Japan’s Nikkei had shed 0.7 percent. Meanwhile, mainland Shanghai was up by 0.1 percent, South Korea’s KOSPI climbed 0.4 percent and Hong Kong’s Hang Seng added more than 1 percent.

ASX 200 had wrapped up the day 0.6 percent higher to reach a level last seen about eleven years ago, while policy easing and possibilities of further RBA rate cut alongside a devaluating Australian Dollar had prompted strong buying, while Bombay stock exchange was up by 0.15 percent during late-midday Asian trading hours.