Low cost for Australian market before federal meeting

15 January, 2014

The Australian stock market closed lower prior to the Federal Reserve meeting, says journalists at Yahoo Finance. The Federal meeting is forecasted to affect the investment in Australia. It is considered that some overseas news have driven the market today. The Federal Reserve meeting is planned to be held on Thursday of this week.

Taper tiger

The Federal meeting would possibly taper the measures the US Government took to stabilize the economy. However, the investors are not aware of whether the output would be in their favour. Many shares have, headed southwards, in the market lately.

Australia is on automatic pilot

The way of trend changing that would happen after the meeting is totally out of Australia’s control. With the Australian dollar depreciating, if the meeting is against Australia’s interests, the shares would slide down, even further. The gold price in the country has also gone down considerably. For four months, the stocks were trading high but the past few weeks have been unlucky for the stocks and the stock market investors.

Many believe people that the tapering will be very small and it will be a combination of monetary policy flexibility, earning growth and low valuation. It is not just Australia; there are many countries that are waiting for the tapering meeting.

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