Global equities received a lift this week after the Federal Reserve’s July policy meeting minutes showed that the US central bank was in no hurry to hike interest rates.
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South Korea’s Kospi was flat, on track for a 0.3 per cent weekly gain. “Despite some members saying that an immediate hike is appropriate and some saying one would soon be warranted, the more cautious members of the Fed said that they would have “ample time” to react to a rise in inflation”. Urban Outfitters Inc. soared 16% after its results exceeded analysts’ forecasts.
The yen has risen around 20 per cent versus the dollar this year.
The Fed has been in the spotlight this week with comments from the likes of New York Fed President William Dudley and Atlanta Fed President Dennis Lockhart keeping a September rate hike in the mix. Oil was down 25 cents to $46.33 a barrel in NY.
The Dow Jones industrial average fell 78 points, or 0.4 percent, to 18,474.
Vestas Wind Systems A/S surged 10 percent after increasing its annual guidance.
The Federal Reserve will release the minutes from its latest meeting Wednesday afternoon. Fewer than 30 of the S&P 500’s companies have yet to report.
And with U.S. GDP on track to grow only around 1.5 percent this year, according to Gluskin Sheff economist David Rosenberg, down from 2.6 percent in 2015, it’s hard to see a move in December as well. Britain’s FTSE 100 gained 0.1 percent to 6,862.
Britain’s pound was the biggest victor against its US counterpart, climbing after a report showed United Kingdom retail sales jumped more than economists forecast in the month after Britain voted to quit the European Union. A stronger yen, however, pulled Japan’s Nikkei back 0.9 percent. US oil closed at its best level since early July on Wednesday after weekly data showed a steeper-than-expected decline in domestic crude inventories. The dollar also slipped to 99.66 yen earlier, a hair above Tuesday’s more than seven-week low of 99.53 yen. A year ago, they were looking for 2.5 percent. Gold and silver prices were also slightly higher on Thursday.
The Bloomberg Commodity Index was set for the most enduring rally in more than two months as the dollar weakened.
A weaker greenback tends to help commodities as it favours non-U.S. buyers of dollar-denominated products. It jumped 62 cents the previous session to $49.85. Australian shares .AXJO added 0.2 percent, heading for a 0.2 percent decline for the week.
The euro was little changed at $1.1344 after touching $1.1366 overnight, its highest since June 24.
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Market participants interpreted the minutes as moderately positive for risk-taking appetite, with the Fed remaining divided on the timing of the next rate hike.
