Overnight

Choppy or otherwise or whatever you want to call it, market activity won't be much until the two central banks much of investors around the globe are currenlthy focused on have their upcoming meetings this week.

Reuters reported earlier that the Japanese stocks traded upward in in choppy markets Tuesday morning with the Nikkei up 0.3% to 16,570 after opening at 16,403.22.  Wednesday is the big day when both banks will meet for two days and the outcome will be interesting.  Reuters, for example, is suggesting that now would be a good time for the Fed to surprise with a rate hike that might help "close" some of the confidence gap the Fed has. For our coin we think that's a bit of  a stretch with not a small patina of propaganda attached.

The Topix index traded nearly flat at 1,312.04. Across the Korean Strait, the Kospi was lower by 0.24 percent. The Japanese yen strengthened to 101.85 against the dollar measured against levels above 102.00 last week. The ASX 200 was off 0.15%., the Hang Seng down 018% while oil prices in Asian U.S. crude futures traded a touch lower, down 0.18 percent at $43.22 a barrel, after finishing up 0.6 percent in the U.S. session. Global benchmark Brent was down 0.11 percent at $45.91, following a 0.4 percent overnight gain.

The odds are better than even whatever either of these two banks unfold it will be wrong or harmful. Investors seem more discombobulated about the BOJ than the Fed where it seems no change in rates is fairly well expected. In the U.S. many believe the markets have already done much of the work for the Fed as sell-offs in long bonds and safer dividend sectors like utilities and telecoms have already sold down some while the dollar has appreciated. The WSJ notes that "Since Labor Day, the Dow Jones Industrial Average has fallen 1.95%, while the yield on the 10-year U.S. Treasury note has climbed 0.08 percentage point to 1.698% and the WSJ Dollar Index has risen 0.95%. On Monday, the Dow dropped 3.63 points to 18120.17."

 The rising cost of borrowing dollars for brief periods is hitting financial institutions and other companies around the globe, a tightening of conditions that further limits already slim prospects that the Fed will raise interest rates at its meeting ending Wednesday.

The rising cost of borrowing dollars for brief periods is hitting financial institutions and other companies around the globe, a tightening of conditions that further limits already slim prospects that the Fed will raise interest rates at its meeting ending Wednesday.

Oil had rallied on Monday before settling off its highs on scepticism over Venezuela's bid to talk up a potential OPEC output freeze, and on indications U.S. crude stockpiles had risen last week.
Spot gold XAU edged slightly higher to $1,313.80 an ounce.