Recovering from the most significant losses seen since September last year, Asian shares traded higher overnight after the World Bank raised its global growth forecast. Policymakers cited continued strength in advanced economies, offsetting the potential negative impact tighter monetary conditions will have for developing markets, as the main factor. The World Bank upgraded its forecast for global growth this year by two tenths to 3.2 percent, and predicted a faster pace for both 2015 and 2016.
Federal Reserve officials Charles Evans and Dennis Lockhart will speak today in the U.S, where the central bank’s Beige Book business survey is due after yesterday’s retail-sales report beat estimates. The positive data came as a welcome relief following last week’s disappointing payrolls report. Despite the Federal Reserve’s plans to cut stimulus by $10 billion per month to $75 billion, robust economic performance has offset most of the potential negativity.
Price moves have been wild recently as the market tries to second-guess the speed of tapering by the Federal Reserve, and when it might actually start raising interest rates. Two of the more hawkish Fed officials, Dallas Fed chief Richard Fisher and Charles Plosser at the Philadelphia Fed, reaffirmed their determination to stick with tapering. Investors’ attention will now turn to the more dovish leader of the Chicago Fed, Charles Evans, who is due to speak later today.