The Treasury 30-year yield was little changed at 2.33 percent as of 10:32 a.m. London time, according to Bloomberg Bond Trader data. Murphy Oil rose 4.3% to $27.55 and Transocean rose 5.6% to $9.65.
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Gold prices rose to a two-week high after the US Federal Reserve’s decision to keep interest rates on hold sent the dollar to its lowest level since the start of last week.
The Dow Jones Industrial Average edged up 0.54% to 18,392.46 points, the S&P 500 grew 0.65% to 2,177.18 points and the Nasdaq rose 0.84% to 5,339.52 points.
The RBNZ’s blunt statement that further easing would be needed knocked the local dollar down 0.2 percent to $0.7334, but the market has found it hard to sell a currency that still offers an overnight interest rate of 2 percent.
The Federal Open Market Committee on Wednesday made a decision to keep interest rates unchanged at between 0.25% and 0.50% and cut the number of rate increases they expect this year from one to two. For more on this, BNN is joined by Chris Damas, President at The BCMI Report. USA benchmark crude oil rose 98 cents to close at $46.32 a barrel, while Brent crude, used to price worldwide oils, gained 82 cents to $47.65. The yield on the 10-year Treasury note has climbed from about 1.35 percent in early July to its Wednesday close of 1.67 percent. Salesforce was down 3.6 percent at $71.87 and Alphabet was down 0.14 percent at $818.80.
The materials group, which includes precious and base metals miners and fertilizer companies, added 1.5 per cent. On the Nasdaq, 1,232 issues fell and 946 advanced.
Winer said he remains concerned how much more stocks can increase in the short-term, with the USA presidential election coming and third-quarter company earnings reports around the corner.
The S&P energy index surged 1.33 per cent and was the top gainer among the 11 major sectors of the benchmark index. The stock was also on pace to record its best trading day since July 30, 2014, when it gained almost 20%.
The yen pulled back to 112.94 per euro and 100.77 per dollar, still stronger than the BoJ likely hoped after its latest try at stimulating growth.
At a press conference following the announcement, Chairwoman Janet Yellen said that given current economic conditions, the cautious approach is more appropriate because it is easier to raise rates than cutting them later if economic indicators soften.
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Yet the policymakers on the Federal Open Market Committee (FOMC) displayed confidence the rebound would continue through the second half, and indicated that they foresee one quarter-point rate hike before the end of the year, and possibly two next year. It also reduced its longer-run rate forecast to 2.9 percent from 3 percent. Investors are now looking ahead to the release next week of a raft of economic data, such as monthly US consumer confidence and durable goods orders and Chinese factory activity, for the latest insights on the world economy’s health.
