Investors await Fed, BOJ results

SHARES made modest gains and the dollar lost ground against the yen yesterday as investors awaited the outcomes of Federal Reserve and Bank of Japan (BOJ) policy meetings that will conclude today.

Nagging doubts about the firepower left available to top central banks and a slip in oil prices saw the pan-European Stoxx 600 index dip in and out of the red after seven falls in the last 10 days.

It was up 0.3 percent, but the oil and gas sector slipped 0.7 percent.

Wall Street was set for modest gains at the open, according to stock index futures. Crude prices slipped after major producer Venezuela, mired in economic crisis, said oil markets were effectively 10 percent oversupplied.

The yen was marginally stronger in the currency markets on speculation that the BOJ might do little more than tinker with its stimulus programme and that the Federal Reserve was likely to stay guarded about its rate hike plans.

The pre-BOJ and Fed caution kept European bond market moves small too. – Reuters