While the Asian stocks are on an upward streak, the Central Banks of several countries are set for a series of meetings to tweak the policies in relation to investment markets. The recent hikes in stock prices have kept the investors stiff on their position. British Prime Minister Boris Johnson has expressed his concern for the probability of a market fall due to the increased spread of a new variant of Coronavirus, known as Omicron.
The market could witness a fast and early closing for buying assets this week. The probability for hikes in the price of assets is much greater than normal. The series of meetings between a host of central bank authorities, including the European Central Bank, Bank of Japan, and the Bank of England, are expected to bring their own policies. Although it will not be quick, the reports suppose that much of the policy is pre-decided and anticipated. However, experts advise investors to be ready for at least a couple of surprises from the meetings.
The Impact of New Policies in Relation to Current Conditions
John Briggs from NatWest Markets states that the implementation of the new policies across different geographical areas would result in volatility. However, the situation involving the virus too carries a risk tantamount to this, if not exceeding. Regarding the US dollar, experts agree that there will not be many fluctuations unless there is a larger revision in the policies.
The Rise in Asian Stocks
Asian stocks, in particular, have successfully been adding to their value. These are some of the positive fluctuations of Asian stocks this week.
- The Asia-Pacific index of MSCI has gone up 0.8% since its position from last week.
- Nikkei from Japan rose to 1.0% this week.
- The Chinese stocks have added another 1.4% to their last week’s value.
The hike has been reflected in treasury and commodity markets as well. Oil in the past week has broken its losing streak of 8 weeks with an 8% increase in its value.