The Federal Reserve and Bank of Japan kick off their policy meetings, oil tumbles, global stocks are mixed and China selects new public/private partnership projects. Here are four things to know in the market today, September 20.
1. The Fed and BoJ Kick Off Policy Meetings
The United States Federal Reserve and the Bank of Japan both kicked off their policy meetings today, with decisions expected on Wednesday.
Market players are betting that the Fed will hold rates at the conclusion of the meeting, with many expecting a clear hint as to the timing of the next increase.
The Bank of Japan is expected to make significant changes to its easing program. Officials have hinted that they are considering lowering rates further into negative territory.
2. Oil Tumbles after Glut Warning
The oil price rally came to an end on Tuesday, as prices dove toward a six-week low. The decline came after Venezuela warned that global supplies needed to decline by 10% to bring production to consumption levels.
The comment pushed U.S. crude down 16 cents to $43.70. Brent was down 15 cents to $45.82 a barrel.
3. Global Stocks Are Mixed
U.K. and European stocks were mostly higher in choppy trading, as investors remained cautious ahead of this week’s central bank meetings.
In Asia, shares were mixed amid cautious trading.
U.S. stock futures pointed to a slightly higher opening.
The BoJ and Fed meetings are driving markets on Tuesday ahead of policy decisions expected on Wednesday.
4. China Selects New Public/Private Partnership Projects
Chinese officials have selected new public/private partnership projects totaling 1 trillion yuan. While the news was welcomed by investors, news that the country’s losses from its shadow banking system may be as high as $375 billion tempered sentiment. High borrowing costs have weighed on the economy as well.
