Investors are also keeping tabs on the BoJ’s meeting this week, though recent speculation that it will shift away from its ultra-loose monetary policy has diminished, with observers tipping a move in 2024
Stock markets dropped Monday as traders took a step back after last week’s rally, with Fed officials looking to temper expectations the US central bank will cut interest rates several times next year.
Investors are also keeping tabs on the BoJ’s meeting this week, though recent speculation that it will shift away from its ultra-loose monetary policy has diminished, with observers tipping a move in 2024.
Equities look set to end the year on a high after the Federal Reserve suggested it will begin loosening monetary policy after a string of data showed inflation dropping and the economy on course for a soft landing.
The Dow and Nasdaq hit record highs on Wall Street as tech firms soared, but the buying frenzy slowed Friday as investors took a step back, which analysts said was to be expected after the latest advances.
Asia struggled at the beginning of this week, with Hong Kong one percent lower, while Tokyo, Shanghai, Sydney, Singapore, Mumbai, Taipei, Manila and Jakarta were also in the red.
London, Paris and Frankfurt opened lower.
Wellington, Bangkok and Singapore eked out small gains, nevertheless.
A number of Fed officials lined up last week to douse expectations they will cut rates next year. Some observers have forecasted as many as six cuts, but the bank’s “dot plot” forecast saw three.
New York Fed chief John Williams told CNBC that “we are not really talking about rate cuts”, adding it was “just premature to be even thinking about” a March cut, which some analysts have suggested.
Williams added: If we get the progress I’m hoping to see. Of course it would be kind of natural to move monetary policy over a period of years back to more normal levels.
