Chinese Shares Close Higher Ahead of FOMC

Mainland Chinese shares led gains across Asia on Wednesday, with the Shanghai Composite closing up 4.89% at 3,152.26.

The index recovered much of the ground it lost on Tuesday when the mainland benchmark index lost 3.5%.

In Hong Kong, the benchmark Hang Seng index also ended the day higher, up 2.38% at 21,966.66.
Investors shrugged off news that shares in China’s largest brokerage, Citic Securities, had fallen as much as 4%.

The share fall came after it was announced three of the firm’s executives, including its president, were under police investigation for suspected insider trading and “leaking” inside information.

Elsewhere, investors continued to remain cautious ahead of a decision by the Federal Reserve on whether or not it will raise US interest rates rates for the first time in nearly a decade.
Bernard Aw, market strategist at trading firm IG, said the market was positioning itself for a rate rise this week.

via BBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza