Market Update & Important Indicators:
U.S. stocks advanced after the Federal Reserve left interest rates unchanged. The central bank signalled Wednesday that it still anticipates a rate increase before year-end, with forecasts showing 10 of 17 officials expected by December to raise the benchmark federal-funds rate by a quarter percentage point. Most investors didn't expect the Fed to raise rates and market reaction was relatively muted. Fed funds futures, used by investors to bet on central-bank policy, suggested an 18% chance of a rate rise ahead of the announcement, according to data from CME Group. The odds of a rate increase by December were roughly 57%. In European markets, the Stoxx Europe 600 gained 0.4%
Asian shares were broadly mixed Wednesday ahead of key monetary-policy announcements by the Bank of Japan and the U.S. Federal Reserve. the Bank of Japan left its main interest rates unchanged, but introduced an interest-rate target for 10-year government bonds, committing to keep them around zero, and said it would continue with its asset-purchase program until inflation "exceeds" 2%. Stock markets rose after the BOJ decision as bank shares climbed, further buoyed by a 3% jump in U.S. crude-oil prices. Financial shares gained amid relief the Bank of Japan didn't cut interest rates further into negative territory. A steeper yield curve was also expected to boost lenders whose net interest margins depend on the difference between the short-term rates at which they borrow and the long-term rates at which they lend.
Australian shares extended gains Wednesday after Japan's central bank laid out a new policy framework aimed at stoking inflation. It was the sharpest move for the local market this week as investors cautiously awaited the outcome of the Bank of Japan's review of existing monetary measures and the U.S. Federal Reserve's policy meeting, which concludes later in the global day. Lifted by broad gains, the S&P/ASX 200 rose 36 points, or 0.7%, to 5339.6 – the highest close for the index since Sept. 8. All industry sectors were higher, except the basket of telecommunications-services stocks. During the session, the Bank of Japan said it would continue quantitative easing until inflation exceeds 2%. The bank plans to begin targeting rates on 10-year bonds, committing to keep them around zero, and will keep unchanged its target of buying JPY80 trillion of Japanese government bonds a year. The Fed isn't expected to raise short-term interest rates at its policy meeting, but its comments will be examined for signals about the course for rates.
Copper for delivery in three months fell 0.7% to $4,762/t on the London Metal Exchange. In other base metals markets, aluminium was up 0.7% at $1,574/t, nickel was up 0.4% at $10,301/t, lead fell 2.3% to $1,927/t, zinc fell 1.2% to $2,260/t, and tin fell 0.9% to $19,311/t.
Recent Contacts & Presentations:
Dakota Minerals Ltd (DKO), Breaker Resources NL (BRB), Bard1 Life Sciences Ltd (BD1), Alto Metals Ltd (AME), Birimian Limited (BGS), Antipa Minerals Ltd (AZY), Vault Intelligence Ltd (VLT), Noxopharm Ltd (NOX), Gage Roads Brewing Co. (GRB), West African Resources (WAF), Cedar Woods Properties Ltd (CWP), Sino Gas & Energy Holdings Ltd (SEH), Salt Lake Potash Ltd (SO4), Kalina Power Ltd (KPO), Austal Limited (ASB), Agrimin Ltd (AMN), Stavely Minerals Ltd (SVY), MGC Pharmaceuticals Ltd (MXC), Vital Metals Ltd (VML), Tox Free Solutions Ltd (TOX), Swick Mining Services Ltd (SWK), Davenport Resources Ltd (DAV), Orthocell Ltd (OCC), BC Iron Limited (BCI)