USA stocks climbed on Thursday, with big tech names leading broad gains, building on strength from a day earlier that was fueled by the Federal Reserve’s decision to stand pat on interest rates.
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MSCI’s broadest index of Asia-Pacific shares outside Japan was steady and within sight of its highest levels since July 2015 that it hit in early September.
The S&P 500 index showed 26 new 52-week highs and no new lows, while the Nasdaq recorded 80 new highs and three new lows.
She said the Fed will monitor whether that approach creates more risk for the world’s financial stability. Yellen said “conditions in the labor market have strengthened” and although “inflation remains low” it is expected to reach the “2 percent objective over time”.
“In today’s statement, the Fed returns the balance of risk language, telling us that the FOMC feels that risks “appear roughly balanced”.
Crucially, the Fed also projected a less aggressive rise in rates next year and in 2018, fanning expectations bond yields will stay low in the foreseeable future.
The dollar and yen both sagged on Thursday (Sep 22), one day after their backing central banks held policy rates stable amid uncertainty over inflation and economic growth. Most experts say that FRS will surely increase its interest rate in one of the next meetings, which are scheduled for November 1-2 and December 13-14.
The Dow Jones industrial average rose 87 points, or 0.5 percent, to 18,381 as of 2:50 p.m.
Chairwoman Janet Yellen has been very adept to date in producing agreed public statements by the Fed’s Open Market Committee on monetary strategy. What is weighing on the dollar, worldwide and against the shekel, were the contradictory messages received from the Fed meeting.
The yield on the 10-year U.S. Treasury note fell to 1.644% from 1.668% on Wednesday, building on four consecutive sessions of declines.
The market likely needs more time to digest the latest events and the yen still faced buying pressure, the dealers said.
Apple rose 0.9 per cent to $114.56 after Nomura and RBC raised their price targets.
Norway’s krone gained 1.6 percent to 8.1313 per dollar and 1.2 percent to 9.1304 to the euro, climbing to the strongest level this year.
The lower overall profile for U.S. and global interest rates together with the Fed’s willingness to take risks with inflation in order to support employment were both factors, which will provide underlying support to gold and, despite a brief spike lower, prices pushed significantly higher with a peak near $1,335 at the United States close.
Brent crude futures traded at US$47.38 per barrel, after having climbed to US$47.83 yesterday.
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The yen dropped from its highest level in almost a month as traders digested the Bank of Japan’s policy tweak on Wednesday.
