Like closing positions ahead of a long 3-day weekend, you don't want to give back hardgotten gains following a decent rally. The thought of negative interest rates unsettles many market participants as concerns about them grow.
Reuters reported: Asian shares fell on Tuesday as investors took profits after a month-long rally and investors grew wary of the market's near-term prospects ahead of major central bank meetings.
Led by China, MSCI's broadest index of Asia-Pacific shares outside Japan fell more than a percent. Japan's Nikkei and South Korea's KOSPI fell more than a percent each.
"We have seen a big move in markets in a very short period of time and investors are calling time ahead of the ECB and the Fed meetings in the coming days," said Kay Van-Petersen, global macro strategist at Saxo Bank in Singapore.
The European Central Bank is widely expected to ease at Thursday's policy review, but there is a lot of uncertainty about how far it would go. Meanwhile, ahead of a U.S. Federal Reserve policy meeting, fed fund futures were barely pricing in one more hike this year.
Meanwhile, Chinese shares fell particularly those in the property sector as rumors the government might attempt to tone down speculation in the nation's high-end property markets. The market was also effected by weaker export and import numbers.
No comments:
Post a Comment