Markets to look at Fed and BOJ meetings

THERE are two central bank meetings for markets to watch this week, in the US and Japan. In both cases, no action is expected with respect to interest rates or more money printing, though in Japan's case, the government has promised a large stimulus package in the weeks ahead. Inaction by the Fed and the promise of more money in Japan should continue to provide support for stock markets and the logic-defying rally since the UK's June 23 vote to leave the European Union, known as "Brexit".

According to the federal funds futures market, the chance of the Fed raising rates this week is only 8 per cent, rising to 24.6 per cent for the next meeting, which is scheduled for Sep…