Morning note:
Concerned about stubbornly high inflation, major central banks across the world, have been moving forward with plans to raise rates. On Tuesday, the Reserve Bank of Australia signaled it would raise interest rates sooner than expected.
Canada’s central bank suggested last week that it could do so as soon as April. The Bank of England is expected to increase rates when it meets on Thursday.
The Reserve Bank of India may also start winding back its loose monetary policy. The central bank has cut the repo rate – from 6.25% in February to 4% in October 2021 – and embarked on a liquidity infusion plan.
The U.S. Federal Reserve will wrap up its two-day policy meeting later today. Investors will look for cues on the Fed's thinking on policy rates.
In another major development, Barclays Plc.'s CEO Jes Staley stepped down under pressure from regulators over how he characterised his ties with convicted sex-offender Jeffrey Epstein. C.S. Venkatakrishnan, known as Venkat, will replace Staley as CEO, and continue his predecessor's strategy of betting big on investment banking. - John Xavier
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Asian markets update
Asian stocks were mixed in the morning trade as investors await the Federal Reserve’s plans to taper its massive stimulus.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.33% in early trading. Japanese markets were closed for a public holiday. Hong Kong’s Hang Seng fell 1.18%. South Korea’s Kospi was down 1.23%.
In U.S., all three major stock indexes touched intraday record highs during the session. The Dow Jones Industrial Average gained 0.39%, and the S&P 500 added 0.37%. The Nasdaq Composite rose 0.34%.
---- Edited by John Xavier
(With inputs from Reuters, PTI and other news agencies.)