Global shares cool as easing expectations fade

Stock markets cooled yesterday as euphoria about the prospect of further central bank policy easing faded, with investors warning against over-confidence ahead of another week of interest rate decisions.

Comments from a key economic adviser to Japanese prime minister Shinzo Abe, who said the Bank of Japan did not need to boost its monetary stimulus as early as this week, tempered expectations that Friday’s policy review will see new action.

The monthly Ifo survey of German business morale dipped in October but beat forecasts, suggesting Europe’s largest economy remains resilient in the face of a slowdown in emerging markets and the Volkswagen scandal.