The Shanghai Composite Index crept up 0.5 percent to 3,114.86. “The way the Fed justified not raising rates by bringing in China and emerging markets got people really confused as to what the Fed is focusing on, and equity markets would like to see the Fed raise because they need to have that uncertainty reduced”.
Equity sentiment has been plunging at a historic rate, the cost to hedge against stock losses has soared, and bearishness among professional stock handicappers has risen the most in three decades – all of which is good news for bulls, if history is any guide.
BEIJING (AP) – Global stock markets were uneven Monday after the Fed’s decision to delay a rate hike added to pessimism about global growth prospects. The Stoxx Europe 600 rose 1.2 percent, led by health-care shares.
THE QUOTE: “The Fed’s inaction last week was a major factor behind the market participants’ decision to sit on the sidelines for the moment”, said market strategist Bernard Aw of IG in a report.
The pan-European FTSEurofirst 300 topped 1 percent even though Germany’s DAX was stuck in neutral.
Malaysia’s FTSE Bursa Malaysia KLCI (.KLSE) fell 1.3 percent as investors eyed news that the U.S. Federal Bureau of Investigation (FBI) launched an investigation into allegations of money-laundering at state fund 1MDB, the Wall Street Journal reported on Sunday citing an unidentified source.
Greece’s government bonds may extend their longest run of weekly gains in a year after the nation voted Alexis Tsipras and his Coalition of the Radical Left, or Syriza, into power for the second time in eight months.
RSA Insurance Group Plc tumbled 20 percent after Zurich Insurance Group AG abandoned plans to make an takeover offer. Shire Plc climbed as much as 3.6 percent after winning European approval for its Intuniv treatment for attention deficit hyperactivity disorder.
South Korea’s Kospi index broke a four-day winning streak after pulling back from a more than one-month high attained in the previous session.
VOLKSWAGEN SLIDES: Around 15 billion euros ($16.9 billion) was wiped off the market value of Volkswagen following revelations that the German carmaker rigged USA emissions tests for about 500,000 diesel cars. MSCI Asia Pacific Excluding Japan Index lost 0.6 percent to 410.10 as of 10:01 a.m.in Sydney, before markets in China and Hong Kong opened. The index ended last week little changed.
CURRENCIES: The dollar rose to 120.31 yen from Friday’s 119.99.
The kiwi weakened to 63.54 USA cents after a gauge of consumer confidence slid to the lowest since 2012 for the third quarter. The euro was little changed at $1.1309.Oil prices were slightly higher as USA drilling slowed, after slumping on Friday on the selloff in US stocks. Brent crude, used to price global oils, gained 67 cents to $48.90 in London. Commercial petroleum stockpiles in Saudi Arabia, the world’s biggest crude exporter, increased to 320 million barrels, the highest since at least 2002, according to data Sunday on the website of the Riyadh-based Joint Organisations Data Initiative. Venezuela and Saudi Arabia agreed to restore stability in the oil market, Foreign Minister Delcy Rodriguez said on Twitter over the weekend.
Investors are to hear directly from Fed Chair Janet Yellen on Thursday, when she delivers a speech in Amherst, Massachusetts. Nickel and copper gained.
E-mini futures on the S&P 500 slipped 0.1 percent on Monday.