US interest rates in focus, markets mixed... Banks may be forced to leave London post-Brexit...
US interest rates in focus, markets mixed
The Fed will announce its latest interest rate decision Wednesday and the markets are firmly focused on the news. Although a rate hike has not been priced-in for this month, a steer on the Fed’s monetary policy will be closely viewed.
Meanwhile, oil prices are still rising following the Saudi output cut announcement while gold has weakened overnight.
Asian equities closed mixed ahead of the Fed. Tokyo was given a boost by a rise for the greenback overnight, helping Japan’s producers by weakening the yen. Australian miners helped boost Sydney’s ASX which also reacted to an easing of Australian inflation to 1.9% from 2.1%.
European markets are trending higher. Energy stocks were among the best performers. London’s FTSE gained after GDP data revealed that growth hit expectation by nudging higher in the latest quarter.
Wall Street and Toronto are expected to open higher. US new homes sales and oil/gasoline inventory data is due.
Banks may be forced to leave London post-Brexit
London-based investment banks which handle EU government borrowing may lose that business unless they relocate operations outside the UK.
Reuters reports that three sources with knowledge of the matter say that EU officials are planning to force banks handing national borrowing to have a ‘significant’ presence in the EU post-Brexit.
The rules would be similar to those in the US which requires banks handling primary dealers to be based in the US.
Currently, UK-based banks can operate across the EU without restriction due to ‘passporting’ arrangements as part of the EU’s freedoms.
The Fed will announce its latest interest rate decision Wednesday and the markets are firmly focused on the news. Although a rate hike has not been priced-in for this month, a steer on the Fed’s monetary policy will be closely viewed.
Meanwhile, oil prices are still rising following the Saudi output cut announcement while gold has weakened overnight.
Asian equities closed mixed ahead of the Fed. Tokyo was given a boost by a rise for the greenback overnight, helping Japan’s producers by weakening the yen. Australian miners helped boost Sydney’s ASX which also reacted to an easing of Australian inflation to 1.9% from 2.1%.
European markets are trending higher. Energy stocks were among the best performers. London’s FTSE gained after GDP data revealed that growth hit expectation by nudging higher in the latest quarter.
Wall Street and Toronto are expected to open higher. US new homes sales and oil/gasoline inventory data is due.
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Latest |
1 month ago |
1 year ago |
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North America (previous session) |
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US Dow Jones |
21,613.43 (+0.47%) |
+0.95% |
+17.00% |
|
TSX Composite |
15,202.37 (+0.49%) |
-0.74% |
+4.48% |
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Europe (at 5.00am ET) |
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UK FTSE |
7,481.13 (+0.62%) |
+0.46% |
+11.26% |
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German DAX |
12,314.78 (+0.41%) |
-3.57% |
+20.17% |
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Asia (at close) |
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China CSI 300 |
3,705.39 (-0.38%) |
+1.02% |
+13.33% |
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Japan Nikkei |
20,050.16 (+0.48%) |
-0.51% |
+22.38% |
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Other Data (at 5.00am ET) |
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Oil (Brent) |
Oil (WTI) |
Gold |
Can. Dollar |
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50.47 (+0.54%) |
48.27 (+0.79%) |
1245.90 (-0.50%) |
U$0.7996 |
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Aus. Dollar |
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U$0.7906 |
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Banks may be forced to leave London post-Brexit
London-based investment banks which handle EU government borrowing may lose that business unless they relocate operations outside the UK.
Reuters reports that three sources with knowledge of the matter say that EU officials are planning to force banks handing national borrowing to have a ‘significant’ presence in the EU post-Brexit.
The rules would be similar to those in the US which requires banks handling primary dealers to be based in the US.
Currently, UK-based banks can operate across the EU without restriction due to ‘passporting’ arrangements as part of the EU’s freedoms.
