Friday 12 July 2013

Markets rise as BoJ leaves monetary policy unchanged

Global stock markets rose on Thursday, buoyed by Federal Reserve Chairman Ben Bernanke's statement on Wednesday that it would keep monetary policy accommodative “for the foreseeable future”.

In the US, the S&P 500 rose 1.4 percent to a new closing high of 1675.02. The 10-year Treasury yield fell 5.5 basis points to 2.57 percent

Elsewhere, the STOXX Europe 600 rose 0.6 percent while in Asia, the Nikkei 225 rose 0.4 percent and the Shanghai Composite jumped 3.2 percent.

Markets, however, received no additional boost from the Bank of Japan, which left monetary policy unchanged following its policy meeting on Thursday.

Elsewhere in Asia, though, monetary conditions appear to have tightened.

China's seven-day repurchase rate jumped 23 basis points on Thursday to 3.83 percent.

Bank Indonesia raised its key interest rate by 50 basis points to 6.50 percent on Thursday, its second consecutive rate hike.

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