The minutes, which were released on Wednesday, showed that members of the rate-setting Federal Open Market Committee were generally upbeat about the USA economic outlook and labor market. Investors, however, seemed to read the hawkish Fed as advocating a go-slow approach to ending monetary policies that have been accommodative to stocks. The index last stood at 94.514, having lost 1.1 percent so far this week, as markets trimmed chances of rate rises this year amid subdued inflationary pressures.
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Urban Outfitters jumped 12 percent after the apparel maker posted a surprise rise in comparable sales, attracting a host of brokerages to raise price targets. (URBN) surged 15%, after its second-quarter profit margin improved.
The dollar slipped against the yen and the euro with the dollar-yen slipping below 100 with Fed officials split on hike.
The currency slid for the fourth time in five days after minutes from the central bank’s July meeting showed officials were divided over the urgency to raise interest rates again.
“There is a little bit of unwinding of the positions and some prudence and caution creeping into the markets, ahead of the Fed minutes”, said Larry Hatheway, chief economist at GAM Holding AG.
THAT WASN’T EASY: Staples’ quarterly results were about equal to analyst projections, but the office supply company said its sales will continue to decline in the current quarter and fell 58 cents, or 6.2 percent, to $8.75. Others believed the US was “at or close” to full employment, meaning a state where unemployment was low, fully recovered from recession and at a point where it falls much more it could cause more inflation. The declines were larger than expected, which is generally good for oil prices. The move pushed oil prices lower.
The weaker dollar was an additional help to commodities like crude oil, which extended its rally for a fifth day on Wednesday on an unexpected drawdown in U.S. crude and gasoline.
“The Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation”, the Fed stated.
United States crude rose 0.1 per cent to US$46.85 a barrel, with their surge slowing after a Reuters report that suggested Saudi Arabia was cranking its crude output to new record highs, even as OPEC talked of ways to ease a global glut. A similar measure to link Hong Kong with the Shanghai stock exchange took effect in 2014. The Wall Street Journal Dollar Index, which measures the American dollar against 16 other foreign currencies, fell 0.2% to 86.21.
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Japan’s Nikkei .N225 , however, bucked the trend, dropping 1.5 percent after data showed exports from the country falling at their fastest pace since the financial crisis.
