Subdued equity markets on Thanksgiving Holiday

  • By YOUKYUNG LEE, AP BUSINESS WRITER

Asian stock markets were largely flat on Thursday with investors in the U.S. markets going on a Thanksgiving holiday and the Fed minutes largely in line with investor expectations that the Fed will soon raise interest rates for a third time next month. Japan was closed on a holiday.

KEEPING SCORE: China’s Shanghai Composite Index fell 0.2 percent to 3,422.65 while South Korea’s Kospi dipped 0.1 percent to 2,538.88. Australia’s S&P/ASX 200 was flat at 5,986.50. But Hong Kong’s Hang Seng index rose 0.5 percent to 30,148.75. Stocks in Singapore and other Southeast Asian countries were slightly higher.

FED: Minutes of the Fed’s last meeting that ended Nov. 1 showed that most officials generally believe that it’ll soon be time for another increase in the Fed’s key interest rate. A few Fed leaders think rates should stay where they are until there is more evidence inflation is rising, showing the concerns that the U.S. inflation is falling short of expectations despite the jobless rate falling to the lowest level in nearly 17 years. But the minutes did not change expectations for a December rate hike, analysts said.

ANALYST’S TAKE: While the minutes did not surprise markets, “the statement does clear the air of one raging debate, and that’s 2018 rate hikes unambiguously depend more pressingly on inflation than on growth,” said Stephen Innes, head of Asia trading at OANDA.

ABC News US via the Associated Press

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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