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Fed Meets Today, Asia Up, Euro Steady

By Cina Coren
Cina Coren is a former Wall Street broker and financial advisor. She holds a Master's degree in Communications and spent many years writing for international news outlets and journalistic publications. Today, Cina spends most of her time writing internet articles and blogs, and reading various newspapers to stay on top of the news.

Asian share markets were mostly firmer on Tuesday and the euro held onto some rare gains, relieved that European equities had weathered Greece's election outcome without much disruption.

Japan's Nikkei gained 1.4 percent, while Australia's main index added 0.5 percent. Moves were mostly modest and MSCI's broadest index of Asia-Pacific shares outside Japan was flat on the day.

China went its own way and the Shanghai index slipped 0.5 percent.

Bad weather in the United States curbed activity on Wall Street in a busy week for earnings, while investors had reason for caution as the Federal Reserve holds its first policy meeting of the year.

On Wall Street, the Dow ended Monday up a bare 0.03 percent, while the S&P 500 gained 0.26 percent and the Nasdaq 0.29 percent.

Around 30 percent of S&P500 companies report earnings this week, including tech heavyweights Microsoft, Apple, and Google. Of the 96 companies that have reported so far, 66 have topped forecasts, 18 disappointed and 12 were in line with estimates.

The U.S. Federal Reserve starts a two-day policy meeting on Tuesday and investors are eager to hear its response to the QE policies from the euro zone to Canada and Switzerland.

The general assumption is the Fed will acknowledge the uncertain global outlook and stick to its promise to be patient on tightening. Yet its timetable remains for lift-off on rates by mid-year, a trajectory that presages further broad-based gains for the dollar.

Meanwhile, the dollar was near an 11-year peak against a basket of major currencies at 94.909 having risen 11 percent in only the past three months. It softened a shade on the yen to 118.22 yen, while the euro pared a little of its recent heavy losses to stand at $1.1245.

Cina Coren
About Cina Coren
Cina Coren is a former Wall Street broker and financial advisor. She holds a Master's degree in Communications and spent many years writing for international news outlets and journalistic publications. Today, Cina spends most of her time writing internet articles and blogs, and reading various newspapers to stay on top of the news.
 

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