Equities In Waiting Mode Ahead Of Bank Decisions AC

LONDON, (UrduPoint / Pakistan Point News -20th Sept,2016) - Global equities markets drifted Tuesday with dealers on tenterhooks on the first day of key monetary policy meetings for the US Federal Reserve and Bank of Japan.

"As they have throughout the day across Asia, Europe and the US, stock markets continue to tread water with moves in either direction lacking any traction as traders refuse to commit ahead of the BoJ and Fed," Oanda analyst Craig Erlam told AFP.

London's benchmark FTSE 100 index ended the day with a gain of 0.3 percent, with Frankfurt's DAX 30 winning 0.2 percent. But in Paris, the CAC dipped 0.1 percent. On Wall Street, the Dow had pushed up 0.3 percent by late morning.

Analyst Connor Campbell said the gains reflected "...investors gradually feeling more confident that the Federal Reserve will sit on their hands during tomorrow's meeting." The Federal Reserve and Bank of Japan were kicking off two-day policy meetings on Tuesday.

The Fed heads into one of its most keenly awaited gatherings after weeks of speculation that has fanned volatility across global trading floors, with investors having been split on whether the US central bank will lift interest rates.

At the same time opinion is divided on what the Bank of Japan's intentions are, with expectations for fresh stimulus tempered by a lack of concrete promises from Tokyo, despite weak Japanese growth and almost non-existent inflation.

Asian markets drifted lower, with the Dollar also virtually unmoved as forex markets were also in a wait and see mode. Tokyo's Nikkei index swung to and fro through the day before ending 0.

2 percent lower.

Hong Kong shed 0.1 percent by the close and Shanghai lost 0.1 percent following healthy gains Monday. "Investing decisions are being restrained by this week's central bank policy meetings which have the potential to upend current thinking on the low interest rate environment," said nalyst Jasper Lawler at trading firm CMC Markets.

- Potential for volatility - ============================ "It's not unusual for traders to adopt a more cautious approach ahead of these events, particularly when we have two on the same day, both of which have the potential to create huge amounts of volatility in the markets," said Erlam.

In company news, GlaxoSmithKline shares dipped less than 0.1 percent to 16.45 Pounds, as investors were unimpressed with a new boss at the British drugs giant. GSK said it had appointed Emma Walmsley, its head of consumer healthcare, to lead the group and find new treatments in a fast-consolidating sector.

Walmsley, who joined GSK from French cosmetics giant L'Oreal six years ago and has a background in marketing, will take up her new post at the end of March. Back in Tokyo, Japanese airbag supplier Takata tumbled 11.6 percent after a report said some potential buyers were considering bankruptcy proceedings if they are successful in its purchase.

The firm has been hit by the global auto industry's biggest-ever safety recall over its exploding bags. Bloomberg News said private equity firms and auto parts makers were preparing offers for the company, and some were considering the drastic bankruptcy action to mitigate the liabilities.