The Asian stock market quoted mixed results over the past week, while traders are waiting for the announcement of the Federal Reserve of United States, the decision of the Central Bank of United States will be followed by a press conference held by the President of the Federal Reserve, Janet Yellen.
What we should expect is a rise in the types of interest in June, yet the experts in the area doubt about whether FED will raise the types any more this year, as they had announced at the beginning of 2017.
Weak inflation data threaten to rise the final types while the foreseen inflation in 5 years are at a minimum of 7 months of 2.18%, clearly below the 2.52% after the victory of Donald Trump for the Presidency of the United States.
As announced by the firm of TransUnion, the latest rising of types last December, left approximately 8.6 million consumers unable to afford the new monthly payments, which were expected to be just $18 per month; a problem that would possibly be aggravated by the upcoming rise of types.
Kospi, in South Korea fell 0.2% on Wednesday, while the Shanghai composite dropped 0.5%. The broadest shares of MSCI Asia Pacific excluding Japan rose slightly, while Nikkei 225 in Japan gained a small 0.1%.
The shaky Asian markets continued with a close strong on Wall Street at the beginning of this week, this broke the latest downward trend and improved optimism of traders about the upcoming and expected announcements of the FED.
The experts in the area are hoping that the Bank of Japan keeps monetary policy unchanged on Friday, after the 2-day policy meeting, despite low inflation and the economy of the country which is at its best. BOJ is expected to keep the promise of bringing interest rates to a 0.1% in short term and the 10-year government bond yield around 0% under the policy of control of the performance curve.
The Governor of the Bank of Japan, Haruhiko Kuroda, has completely refused to comment on how BOJ will provide an end to the monetary policy of expansion, arguing that inflation is light-years from the 2% target.
Meanwhile the dollar was at 110,07 yen for the closure of the session from last week, rising a mild 0.03%. The American currency has remained very stable against the European currency, located in the 1,1215 dollars, and registering a gain of 0.01%.
While all this is happening, traders are waiting for the announcements, taking their time to do business in this session.