Asia braces for another Fed taper

Asian capital markets have been active since the new year, but sentiment should turn soft this week on another potential round of Fed tapering.

Trading should be fairly quiet for the week ahead as investors choose to remain on the sidelines ahead of the Federal Open Market Committee FOMC meeting on Wednesday, while at the same time the Chinese New Year holiday begins January 31.

At the conclusion of the  January 28-29 FOMC meeting, many analysts expect another $10 billion reduction in its asset purchase programme to $65 million, with some predicting that the tapering process will be completed by mid-2014.

“We believe the committee will take this step because of stronger economic data, moderate reaction of financial markets to the December decision to taper, and comments from FOMC participants...

¬ Haymarket Media Limited. All rights reserved.

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