Asian shares supported by Bernanke comments

Posted by Reuters

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Investors locked in some of the recent gains by world stocks and bonds on Wednesday as they waited to see what the mood was at the most recent meetings of the U.S. Federal Reserve and the Bank of England.

European shares fell for a second straight day, then stabilized. Overnight losses on Wall Street and in Asia, along with concerns about company earnings, kept investors cautious.

Focus was largely on events later in the day. The Bank of England will publish minutes of its recent meeting at 0930 GMT (4:30 EDT). Then come U.S. retail sales data and eagerly awaited October minutes from the Fed.

Fed Chairman Ben Bernanke set the tone on Tuesday when he said the U.S. central bank will keep monetary policy ultra-easy as long as needed.

The dollar .DXY sagged after the comments but began firming up as European trading gained pace. The euro still hovered near a three-week high.

“It confirms our view that the Fed will be extremely careful in taking away accommodative monetary policy and that tapering will begin by March at the earliest,” said Elwin de Groot, an economist and strategist at Rabobank.

“Even though it feels like things may not go further, this policy will simply sustain it. And it is difficult to fight against it, so we could see a further narrowing of spreads and riskier asset prices going higher.”

… action in Britain  China HERE