Earlier in the morning, Japanese interest rates remained unchanged, sending the Nikkei up +1.89% closing at 16470 points. The positive news was reflected on neighbouring markets as the Hang Seng and Kospi Indexes were both up over +0.58%. The decision to hold rates to -0.10% hopes to stabilise the economy and Japanese government wants to continue with its negative interest rate policy.
European stocks rose higher following the BOJ announcements. Growths in all major EU indexes was seen starting with DAX30 +0.39%, FTSE100 +0.055%, IBEX +0.81%, FTSE MIB +0.87%.
US Interest rate were put on hold again which piled additional pressure on the FED to consider raising rates next month. Fed Chair Janet Yellen was bullish on the US economy but had hinted that the market is not yet ready for an interest hike. “The economy has a little more room to run than might have been previously thought” she said. She indicated that strong job creation was a good sign for a stable and growing economy. By holding back rates today, the Fed hopes that the market will continue to improve, especially heading into the busy winter period they are forward to a strong retail growth. As a result, both DJ30 and NASDAQ rallied to a day highs of 18220 and 4852.25 points.
Re-Cap
US Interest rate – unchanged at 0.50%
Japanese Interest rate – unchanged at -0.10%
New Zealand interest rate – unchanged at 2.00%