Asian stocks advanced overnight whilst Japanese equities were weighed down by a strengthening Yen. After yesterday’s reports which showed China’s central bank started to drain funds from the money market, investors remained anxious in case the tightening goes too far and hurts economic growth.
Sterling remained rang bound overnight as investors wait for UK jobless figures and the Bank of England’s meeting minutes to help shed new light on monetary policy. The FTSE is indicating a 15 point lower open as sluggish conditions continue.
Gold extended its decline ahead of Federal Reserve meeting minutes which could show policy makers backing further stimulus cuts. Gold has continued to fall from the highest level in more than three months as investors reduce their holdings in the precious metal.