Market Bizzz

In a surprise move, the BOJ on Tuesday decided to let long-term yields move 50 basis points either side of its 0% target, wider than the 25 basis point band previously, even as the central bank kept broad policy setting unchanged.

Last week, Federal Reserve Chair Jerome Powell said the U.S. central bank will deliver more rate hikes next year, even as the economy slips towards a possible recession. * Gold is seen as an inflation hedge, but higher interest rates raise the opportunity cost of holding the asset.

U.S. crude oil inventories fell by about 3.1 million barrels in the week ended Dec. 16, according to market sources citing American Petroleum Institute figures. Gasoline inventories rose by about 4.5 million barrels, while distillate stocks rose by 828,000 barrels, according to the sources, who spoke on condition of anonymity. [API/S]

The positive reaction to the reopening is starting to give way to the realisation that it’s going to be a lumpy path for China to get there, JP Morgan Asset Management’s global market strategist Kerry Craig told Reuters.

While the BOJ is set to maintain ultra-low rates and reassure markets it’s in no rush to withdraw stimulus, Governor Haruhiko Kuroda’s media conference will be carefully watched for hints of any looming policy tweaks heading toward the end of his term in spring.

Softening economic data heading to year-end isn’t offering much help to the mood either, leaving markets wondering where to look for the feel-good vibe that has rallied U.S. stocks in the last two weeks of December 11 times in the last 15 years.