Global equities markets drifted yesterday with dealers on tenterhooks on the first day of key monetary policy meetings for the US Federal Reserve and Bank of Japan.
“As they have throughout the day across Asia, Europe and the US, stock markets continue to tread water with moves in either direction lacking any traction as traders refuse to commit ahead of the BoJ and Fed,” Oanda analyst Craig Erlam told AFP.
London’s benchmark FTSE 100 index ended the day with a gain of 0.3% at 6,830.79 points, with Frankfurt’s DAX 30 winning 0.2% at 10,393.86. But in Paris, the CAC dipped 0.1% at 4,388.60.
On Wall Street, the Dow had pushed up 0.3% by late morning.
Analyst Connor Campbell said the gains reflected “...investors gradually feeling more confident that the Federal Reserve will sit on their hands during tomorrow’s meeting.”
The Federal Reserve and Bank of Japan were kicking off two-day policy meetings.
The Fed heads into one of its most keenly awaited gatherings after weeks of speculation that has fanned volatility across global trading floors, with investors having been split on whether the US central bank will lift interest rates.
At the same time opinion is divided on what the bank of Japan’s intentions are, with expectations for fresh stimulus tempered by a lack of concrete promises from Tokyo, despite weak Japanese growth and almost non-existent inflation.
“It’s not unusual for traders to adopt a more cautious approach ahead of these events, particularly when we have two on the same day, both of which have the potential to create huge amounts of volatility in the markets,” said Erlam.
In company news, GlaxoSmithKline shares dipped less than 0.1% to £16.45, as investors were unimpressed with a new boss at the British drugs giant.
GSK said it had appointed Emma Walmsley, its head of consumer healthcare, to lead the group and find new treatments in a fast-consolidating sector.
Walmsley, who joined GSK from French cosmetics giant L’Oreal six years ago and has a background in marketing, will take up her new post at the end of March.