Markets optimistic on Fed, data... Monetary policy is “art and science” Poloz says...
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Markets optimistic on Fed, data
World markets are in positive mood so far Wednesday with a raft of economic data in focus and the Fed’s latest interest rate decision ahead; a hold-steady is expected.
Meanwhile, commodities are faring well with oil prices and gold both higher amid a weakened greenback.
Asian indexes closed mostly higher as China’s manufacturing sector showed better results and the Australian commodities index gained. Mainland China’s stock market remains closed for the Lunar New Year but Hong Kong re-opened and was the notable exception to the positive end to the session.
European markets are trending higher with corporate earnings proving a hit, especially for the auto sector. Manufacturing PMI data for the Eurozone and Germany was better than expected. In the UK, lawmakers are expected to vote to formally begin the EU exit process.
Wall Street and Toronto are expected to open higher. US manufacturing data is due but the FOMC committee meeting will be in focus.
Monetary policy is “art and science” Poloz says
The governor of the Bank of Canada said that its monetary policy models need to reflect advances in economic knowledge and technology.
Speaking at the University of Alberta Business Schools, Stephen Poloz said that central banks should recognize their limits and adapt the tools and techniques they use.
“Economic models are not crystal balls,” Governor Poloz noted. “The fact that models can deliver only an approximation of the truth means that conducting monetary policy is not a mechanical exercise. It is a complex blend of art and science—in effect, it is an exercise in risk management.”
World markets are in positive mood so far Wednesday with a raft of economic data in focus and the Fed’s latest interest rate decision ahead; a hold-steady is expected.
Meanwhile, commodities are faring well with oil prices and gold both higher amid a weakened greenback.
Asian indexes closed mostly higher as China’s manufacturing sector showed better results and the Australian commodities index gained. Mainland China’s stock market remains closed for the Lunar New Year but Hong Kong re-opened and was the notable exception to the positive end to the session.
European markets are trending higher with corporate earnings proving a hit, especially for the auto sector. Manufacturing PMI data for the Eurozone and Germany was better than expected. In the UK, lawmakers are expected to vote to formally begin the EU exit process.
Wall Street and Toronto are expected to open higher. US manufacturing data is due but the FOMC committee meeting will be in focus.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 19,864.09 (-0.54 per cent) | +0.51 per cent | +20.63 per cent |
| TSX Composite | 15,385.96 (-0.12 per cent) | +0.64 per cent | +21.39 per cent |
| Europe (at 5.00am ET) |
|||
| UK FTSE | 7,158.76 (+0.84 per cent) | +0.22 per cent | +18.13 per cent |
| German DAX | 11,651.05 (+1.00 per cent) | +1.48 per cent | +19.40 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,387.96 (+0.36 per cent) | +2.16 per cent | +15.62 per cent |
| Japan Nikkei | 19,148.08 (+0.56 per cent) | +0.18 per cent | +7.18 per cent |
| Other Data (at 5.00am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 55.69 (+0.20 per cent) |
52.93 (+0.23 per cent) |
1212.20 (+0.07 per cent) |
U$0.7654 |
| Aus. Dollar |
|||
| U$0.7593 | |||
Monetary policy is “art and science” Poloz says
The governor of the Bank of Canada said that its monetary policy models need to reflect advances in economic knowledge and technology.
Speaking at the University of Alberta Business Schools, Stephen Poloz said that central banks should recognize their limits and adapt the tools and techniques they use.
“Economic models are not crystal balls,” Governor Poloz noted. “The fact that models can deliver only an approximation of the truth means that conducting monetary policy is not a mechanical exercise. It is a complex blend of art and science—in effect, it is an exercise in risk management.”
