Rate setters at the Federal Reserve are divided over when the next interest rate rise should be, according to minutes from the U.S. central bank’s policy meeting. The number of people claiming jobless benefits fell by 8,600 in July, the first decrease since February.
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Global bond yields fell with Europe’s benchmark, 10-year German yields, down 3 basis points at minus 0.08 per cent and USA equivalents extending the previous day’s drop to hit 1.55 per cent. Brent crude, used to price global oils, inched up 2 cents to $49.25 a barrel in London. The dollar hardly budged, rising to 100.27 yen from 100.25 yen. The Hang Seng fell 0.5 percent and in Tokyo the Nikkei 225 gained 0.9 percent. Sterling rose almost 1 percent to a two-week high of $1.3173 after United Kingdom retail sales for July beat forecasts, apparently unaffected by Britain’s vote to leave the European Union.
NEW YORK (AP) – U.S. stocks closed barely higher Wednesday as big gains for utilities balanced out losses for retailers like Lowe’s, Target and Staples.
It was concluded that after “assessing the outlook for economic activity, the labour market, and inflation, as well as the risks around that outlook, members made a decision to maintain the target range for the federal funds rate at 0.25 to 0.5 percent at this meeting”.
While policymakers agree that more economic data is needed before raising rates, some expect a hike will be needed soon, according to the minutes from the US central bank’s July 26-27 policy meeting. Its stock sank $1.62, or 12.2 percent, to $11.75.
MSCI’s All World index climbed 0.26 percent to head back toward a one-year high, lifted by a 0.47 percent rise in Asian shares, their biggest gain since August 8.
The euro hit a session high of $1.1356 and the dollar touched a session low against the franc of 0.9540 franc.
The focus now turns to Fed Chairwoman Janet Yellen’s speech next week at the Kansas City Fed’s annual symposium in Jackson Hole, Wyo., said Tom Porcelli, chief US economist at RBC Capital Markets, in a note.
The Bloomberg Dollar Spot Index, which tracks the currency against 10 peers, fell 0.6 per cent as of 5pm in NY. Natural gas held steady a $2.62 per 1,000 cubic feet.
William Dudley, President of the New York Fed, gave a speech on Tuesday where he said investors were being “complacent” about several rate hikes over “the next year or so”. The S&P utility index ended up 1.5 percent in its largest daily percentage gain since the end of June.
U.S. Treasury yields fell on Thursday on bets the Federal Reserve is in no hurry to raise interest rates with domestic inflation stuck below its 2 percent goal and uncertainty about global risks to economic growth at home.
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The mid-afternoon leaders on the Dublin index included drinks group C&C, which rose 1.6pc to €3.83, while Paddy Power Betfair increased 0.8pc to €112.
