<\/p>\n
Global equities<\/strong> were slow on Monday and Tuesday, while currencies<\/strong> held in tight ranges. Investors<\/strong> are nervous as they await the Federal Reserve<\/strong>‘s decision on its bond-buying policy, which could set the tone for future risk appetite.<\/p>\n <\/p>\n The Reserve Bank of Australia<\/strong> is in the spotlight on Tuesday as it took a step towards unwinding extraordinary pandemic stimulus policies by dropping its ultra-low target <\/strong>for required yields<\/strong>. The spotlight is now on the FED<\/strong> as well as the Bank of England<\/strong> who are holding meetings to do just that this week.<\/p>\n <\/p>\n Asian equities<\/strong> were mixed overall. Outside of Japan<\/strong>, the MSCI<\/strong> Asia Pacific Equity Gauge<\/strong> was flat, while the Japanese Nikkei<\/strong> fell 0.4%. Chinese stocks<\/strong> fell 0.6%, led by financials and consumer companies even as the country’s cabinet pledged more support for the consumer services sector, while technology stocks pushed Hong Kong’s Hang Seng Index<\/strong> up 0.6%.<\/p>\n <\/p>\n Across the Pacific in the US, Wall Street<\/strong> hit record highs overnight on gains in energy stocks and Tesla. The Dow Jones Industrial Average<\/strong> rose 0.26%, while the S&P500<\/strong> and Nasdaq Composite<\/strong> gained 0.18% and 0.63% respectively.<\/p>\n <\/p>\n The FED<\/strong> is expected to approve plans on Wednesday to reduce its $120 billion monthly mandatory purchase program, while investors<\/strong> will also focus on comments on interest rates and the persistence of the recent surge in inflation.<\/p>\n <\/p>\n “The elephant in the room is headline and core inflation<\/strong>, which is higher than the Fed<\/strong> had anticipated<\/em>,” said Steve Englander<\/strong>, head of G10FX<\/strong> at Stardard Chartered<\/strong>.<\/p>\n <\/p>\n In commodity markets<\/strong>, a further 4% drop in Chinese coal prices on Tuesday pushed them 50% below last month’s record high.<\/p>\n <\/p>\n