Caution is the name of the game until Friday when the BOJ ends its two day meeting with what many investors hope is a more than expected monetary policy.the Nikkei was off a little over 1% at 16,488.74. The Shanghai Composite was mixed trading between positive and negative; the Kopsi fell 0.4%, Hang Send 0.4% while the Australian ASX 200 rallied 0.4%.
One source reported:
Gold traded steady early on Thursday, clinging to gains from the previous session when it rose 1.5 percent to a 2-week high on a weaker dollar after the U.S. Federal Reserve left interest rates unchanged. Spot gold was little changed at $1,338.87 an ounce at 0112 GMT. Bullion on Wednesday touched a high of $1,342.18, its best since July 14. U.S. gold rose 0.9 percent to $1,338.7 an ounce. The Federal Reserve, always the hairsplitters, left interest rates unchanged on Wednesday while noting near-term risks to the U.S. economic outlook had diminished.
The Fed came under fire Wednesday after leaving rates unchanged as was widely expected.
A former advisor to the Dallas Fed, told CNBC's "Power Lunch" there have been many, many opportunities to hike rates. Now its labor markets conditions index, which gauges the health of the job market, has been negative six months running, she said. "[Chair Janet Yellen] doesn't know what to do. They don't know what to do," Booth said.
"They're scared stiff right now," she added, noting oil prices and the possibility of inverting the yield curve are probably concerns. David Kelly, chief global strategist for JPMorgan Funds, agrees the Fed should have hiked rates a long time ago.
"They've never found the perfect moment, but you never get perfection in life. I think they've made a big mistake by not moving sooner," he told "Power Lunch." This is much of what we've been saying for some time now.
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