“The event we have been waiting for all week is finally upon us and all eyes will now be on Janet Yellen to see if she can deliver what investors so desperately crave: clarity on the near-term path of interest rates”, said Craig Erlam, analyst at Oanda trading group before Yellen’s comments were released. The Nasdaq composite rose 6.71 points, or 0.1 percent, to 5,218.92.
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Benchmark 10-year notes were down 16/32 in price to yield 1.63 percent, the highest since June 24, and up from 1.56 percent before Yellen’s comments. The dollar, however, then rose as traders re-assessed her words and took into account hawkish remarks from Fed Vice Chair Stanley Fischer.
AMP Capital chief economist Shane Oliver said the ASX 200 futures fell four points or 0.1 per cent reflecting the U.S. lead, which points to a soft start to trade on Monday for the Australian share market.
Oil steadied in a volatile session and Treasury prices fell as investors across asset classes parsed the details of Yellen’s presentation, markets’ central focus of the week.
The economy grew an annual pace of 1.1% in the quarter, slightly slower than the first estimate of 1.2%. “That is very anemic”.
Dr Yellen did not indicate when the U.S. central bank might raise rates, but her comments reinforced the view that such a move could come later this year.
Data released just before Yellen spoke on Friday showed the USA economy expanded by just 1.1 percent in the second quarter of the year, held back in part by stubbornly weak business spending.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move.
“It was completely in line with most expectations”, Drilling said in an interview.
SOFTWARE SURGE: Design software company Autodesk rose $2.34, or 4 percent, to $66.04 after reporting a small profit, beating expectations of a loss. That would be the fourth quarter in a row of drops.
European markets are also heading for a flat start, with financial spreadbetter CMC Markets expecting Britain’s FTSE 100.FTSE and Germany’s DAX.GDAXI to open little changed, and France’s CAC 40.FCHI to begin the day down 0.1 percent. One euro bought $1.1182 late Friday, compared with $1.1285 late Thursday. The price of West Texas Intermediate oil, the USA benchmark, was up 20 cents to $47.53, while the price of Brent crude, the global benchmark, increased 5 cents to $49.72. Brent crude, used to price oil internationally, fell 8 cents to $49.59 a barrel.
CURRENCIES: The dollar fell to 100.46 yen from 100.57 yen the previous day.
Oil prices fell early on Monday as output from Iraq rose and as Iran said it would only cooperate in upcoming producer talks to freeze output if fellow exporters recognised its right to fully regain market share.
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Gold futures for December delivery rose 0.1 percent to settle at $1,325.90 an ounce at 1:41 p.m. on the Comex in NY.
