Mexico was waiting to see whether its central bank would follow the Fed by raising interest rates later, while there was also intense focus on how far Argentina’s peso would fall as it begins a new life as a floating currency.
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Oil prices drop as Opec output rises, Brent below US
West Texas Intermediate (WTI) U.S. crude futures were at .41 per barrel, down 35 cents after touching .12, their lowest since February 2009.
The FTSE 100 edged up yesterday ahead of the US Federal Reserve’s decision on interest rates.
Gun buyer in San Bernardino massacre mused on Facebook about troubles
Wearing handcuffs and beige T-shirt, Marquez appeared in federal court in Riverside, California for a brief hearing on Thursday. Apparently it was a marriage of convenience , and a sham in order to get the woman in question American citizenship.
Among stocks, supermarket Sainsbury’s was a strong riser, lifting 10.9p to 259.1p, on the back of data earlier in the week from respected research group Kantar Worldpanel showing the grocer’s sales lifted 1.2% in the 12 weeks to December 6. Germany’s DAX .GDAXI rose 1.8 percent and France’s CAC 40 .FCHI nearly 2 percent.
Hiddink arrives in London, confirms Chelsea talks
The Blues qualified for the knockout stage of the Champions League last week, and will host Sunderland on Saturday. Meanwhile, Chelsea captain John Terry has described Mourinho’s exit after 30 months in charge as a “sad, sad day”.
“Just like counterparts at the Bank of England, members of the Federal Open Market Committee have been at pains to point out that the tightening process will be gradual”, said Ben Brettell, senior economist at Hargreaves Lansdown, in a note.
On Wall Street, the Dow Jones went from a 50-point rise to stand up 79 points, and later added to that to close up 224 points at 17,749, a 1.3% gain.
“With the Dow rising steadily from the moment [Fed chairwoman Janet Yellen] first opened her mouth, the rosy picture she painted of the U.S. economy and the absence of major overseas threats has sent markets surging with relief”, said Robert Craig, private client investment manager at MB Capital.
Overall, this year has been a hard year for stocks, but if the rate hike does come, then this is a clear signal that the economy is getting better.
On the currency markets, the dollar rose against larger major currencies following the Fed’s decision.
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Banking stocks rose as lenders typically make more money in a higher interest rate environment. The euro traded lower against the dollar, dropping to $1.0860. During Asian trading hours, West Texas Intermediate (WTI) futures fell further, shedding 15 cents, or 0.43 percent, to $34.80 a barrel, near a seven-year low. While the spectre of higher rates is often bad for existing debt prices, analysts said investors were pleased future Fed rate rises would be “gradual” in nature.
