Fed Stimulus

Federal Reserve Chairman Jerome Powell's debut appearance is seen as critical for financial markets at a time when many investors are nervous about the US central bank's policy normalisation following years of stimulus after the financial crisis almost a decade ago.

The index rose about 7.1 per cent during the fourth quarter, more than half that gain coming since the November 8 US presidential election on expectations that President-elect Donald Trump's plan to boost fiscal stimulus would benefit the currency.

The Federal Reserve sees three rate hikes next year instead of the two foreseen in September, partly as a result of the fiscal stimulus expected to hit under President-elect Donald Trump.

The Bank of Japan may steal the thunder from the U.S. Federal Reserve and its chair Janet Yellen this week if it chooses to give more monetary stimulus in its latest effort to jumpstart its economy and the U.S. central bank decides to stand pat on interest rates.

U.S. stocks racked up their strongest gain in two months on Monday after Federal Reserve Board Governor Lael Brainard stuck to her dovish stance on interest rates and urged caution about removing monetary stimulus too quickly.

Asian shares fell on Wednesday while the yen lorded over a weakened U.S dollar as fears that the Bank of Japan may retreat from its massive bond-buying campaign added to a shakeout in debt markets globally.

The BSE Sensex fell more than 1 percent on Thursday, heading for their fifth fall in six sessions, reflecting the negative sentiment across the globe after the Bank of Japan refrained from taking further stimulus steps.

European stocks fell while oil prices headed for a sixth session of declines on Thursday after the Bank of Japan refrained from taking further stimulus steps, hours after the Federal Reserve struck a cautious note on its policy outlook.

It is a sign of the caution that permeates the global economic outlook when four of the world's top central banks, all due to meet within days of each other, are almost unanimously expected to make no change to their extraordinary stimulus programs.

The Bank of Japan makes its policy decision on Thursday amid some speculation it could ramp up its already extensive monetary stimulus scheme, which includes negative interest rates on some deposits at the BOJ.

Some 86 percent of economists polled around the globe by Reuters in the past week said yes when asked if major developed economies should now use fiscal policy to add stimulus, as Canada has done, rather than even more aggressive monetary easing.

In the euro zone, where the European Central Bank just delivered an unexpectedly large dose of extra stimulus, growth has been holding up relatively well, but progress in getting the unemployment rate down has also slowed.

The rupee slumped to an over two-year low on Friday, tracking weakness in global markets after the European Central Bank's stimulus package fell short of expectations and renewed fears of a US rate hike.

European stocks rose for the first time in three sessions on Wednesday after Sweden's central bank increased its bond-buying but other assets were steady as investors wait to see if the Federal Reserve will clarify its rate hike plans later.

The European Central Bank's signal that more stimulus is coming for Europe's economy could complicate the Federal Reserve's own message this week about when it might move in the opposite direction.

Federal Reserve Chairman Jerome Powell's debut appearance is seen as critical for financial markets at a time when many investors are nervous about the US central bank's policy normalisation following years of stimulus after the financial crisis almost a decade ago.

The index rose about 7.1 per cent during the fourth quarter, more than half that gain coming since the November 8 US presidential election on expectations that President-elect Donald Trump's plan to boost fiscal stimulus would benefit the currency.

The Federal Reserve sees three rate hikes next year instead of the two foreseen in September, partly as a result of the fiscal stimulus expected to hit under President-elect Donald Trump.

The Bank of Japan may steal the thunder from the U.S. Federal Reserve and its chair Janet Yellen this week if it chooses to give more monetary stimulus in its latest effort to jumpstart its economy and the U.S. central bank decides to stand pat on interest rates.

U.S. stocks racked up their strongest gain in two months on Monday after Federal Reserve Board Governor Lael Brainard stuck to her dovish stance on interest rates and urged caution about removing monetary stimulus too quickly.

Asian shares fell on Wednesday while the yen lorded over a weakened U.S dollar as fears that the Bank of Japan may retreat from its massive bond-buying campaign added to a shakeout in debt markets globally.

The BSE Sensex fell more than 1 percent on Thursday, heading for their fifth fall in six sessions, reflecting the negative sentiment across the globe after the Bank of Japan refrained from taking further stimulus steps.

European stocks fell while oil prices headed for a sixth session of declines on Thursday after the Bank of Japan refrained from taking further stimulus steps, hours after the Federal Reserve struck a cautious note on its policy outlook.

It is a sign of the caution that permeates the global economic outlook when four of the world's top central banks, all due to meet within days of each other, are almost unanimously expected to make no change to their extraordinary stimulus programs.

The Bank of Japan makes its policy decision on Thursday amid some speculation it could ramp up its already extensive monetary stimulus scheme, which includes negative interest rates on some deposits at the BOJ.

Some 86 percent of economists polled around the globe by Reuters in the past week said yes when asked if major developed economies should now use fiscal policy to add stimulus, as Canada has done, rather than even more aggressive monetary easing.

In the euro zone, where the European Central Bank just delivered an unexpectedly large dose of extra stimulus, growth has been holding up relatively well, but progress in getting the unemployment rate down has also slowed.

The rupee slumped to an over two-year low on Friday, tracking weakness in global markets after the European Central Bank's stimulus package fell short of expectations and renewed fears of a US rate hike.

European stocks rose for the first time in three sessions on Wednesday after Sweden's central bank increased its bond-buying but other assets were steady as investors wait to see if the Federal Reserve will clarify its rate hike plans later.

The European Central Bank's signal that more stimulus is coming for Europe's economy could complicate the Federal Reserve's own message this week about when it might move in the opposite direction.