Published: Thu, September 21, 2017
Money | By Oscar Reynolds

Shares tap brakes, dollar reverses as Fed focus builds

Shares tap brakes, dollar reverses as Fed focus builds

The US dollar bought 111.46 Japanese yen, lower than 111.48 yen of the previous session. Eastern Time. The Dow Jones industrial average edged up 14 points, or 0.1 percent, to 22,385.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.2%.

The Fed is expected to keep interest rates unchanged after its two-day meeting while many analysts have suggested it could announce plans to begin unwinding its United States dollars 4.5 trillion balance sheet. "Some US dollar recovery would be in line with that". Lira reacted negatively to the comments made by Mark Carney, the chairman of the British Central Bank.

While not expected to lift interest rates, remarks from the bank and its boss Janet Yellen will be pored over for clues about future moves and its plans to wind down its vast stimulus programme put in place during the financial crisis.

If the focus is on the repurchase of short-term assets, that would likely push the long end of the yield curve higher, driving investors' attention also to shares of banks, which would theoretically make more money with the help of higher net interest margins, said Mr. Morganlander.

The Fed is widely expected to announce on Wednesday that it will begin paring its bond holdings, with reductions likely to start in the coming months.

The Toronto Stock Exchange's S&P/TSX composite index.GSPTSE closed up 63.64 points, or 0.42 percent, at 15,236.67, its highest close since August 8.

Oil prices continued to hold steady over the last 24 hours and ever since the beginning of the week, we have had signs and bouts of weakness in the prices but each time, we have seen the prices bounce back in a strong manner.

On Tuesday, The US President, Donald Trump, worsened his altercation with North Korea across its nuclear encounter, sending intimidation that'll "totally destroy" the country and making a mockery of its leader, Kim Jong Un calling him as a "rocket man".

Financial stocks benefited from a rising U.S. Treasury yields, with the yield on benchmark 10-year notes at 2.222 percent.

But economists and Fed officials say the storms will not affect the underlying trend in growth, which has been steady at around two percent in recent years, and activity should rebound later in the year due to reconstruction efforts. On Friday, it had risen to as high as $1.3616, the strongest since June 24, 2016.

USA crude futures were down 1 cent at $49.90 per barrel, within sight of Thursday's almost four-month high of $50.50.

The most influential movers on the index also included Potash Corp of Saskatchewan (POT.TO), which gained 3.5 percent to C$23.59, and Agrium Inc (AGU.TO), which was up 3.6 percent to C$132.65. Brent crude, used to price worldwide oils, was up $1.05, or 1.9 percent, to $56.19 a barrel in London. The euro was up at $1.1945 from $1.1928.

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