The BOJ said on Wednesday it would seek to guide the 10-year JGB yield around zero percent in an unprecedented move, but investors were left wondering exactly where and how the BOJ would be able to exert control on the bond yield. You have now viewed your allowance of free articles.
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The Dow Jones industrial average gained 98 points, or 0.5 percent, to 18,392. The S&P 500 index added 14 points, or 0.7%, to finish at 2,177.
Phone companies, another group of high dividend payers, also climbed.
A more divided Federal Reserve Open Market Committee agreed September 21 to keep the current target range of 0.25 percent to 0.5 percent for the federal funds rate.
European markets followed Asia’s lead, with Britain’s FTSE 100 climbing 1.3 percent and Germany’s DAX and France’s CAC 40 both jumping nearly 2 percent ahead of what was expected to be a third day of gains in NY.
Stocks are moving higher on Wall Street in midday trading.
PULLED A RABBIT: Open source software company Red Hat rose $2.70, or 3.5 percent, to $79.74 after the company reported better than expected results in its second quarter.
“It’s another example of the issues facing investors right now, particularly pension funds and retirement funds, that they are all chasing yield in the same places”, said Ian Winer, co-head of equities trading at Wedbush Securities.
Higher interest rates make currencies more attractive to investors. “We anticipate that during the key season, physical markets could reassert their role as a source of support for the market”, Teves said in a Thursday note. According to St. Louis Fed data, net interest margins for all USA banks was 3.01 percent – among the lowest rates in years, and down from a peak of 3.83 percent in early 2010. Members said the case for an increase to the fed funds rate had strengthened but chose to wait for further evidence the economy was progressing toward its inflation and labor market objectives. The central bank said risks to its economic outlook are “roughly balanced”.
US gold futures rose 0.5 percent to $1,338.40 an ounce.
With the jump in oil, shares of energy and drilling companies were among the S&P 500’s top gainers.
Rosengren has swung in favor of rate increases in recent months as unemployment declined to 4.9 percent, at or very close to most estimates of its lowest sustainable level.
Mining shares were the top-performing FTSE stocks, led by Glencore which finished up 5.5 per cent as the Fed’s decision pushed down the USA dollar, making commodities cheaper for holders of other currencies. The Nasdaq composite climbed 33 points, or 0.6 percent, to 5,325.
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The dollar bought 101.10 Japanese yen, higher than 100.90 yen in the previous session.
