The FOMC statement was released yesterday and showed optimism regarding the U.S economy. Members of the committee expressed belief that the economy is improving at a ‘solid’ pace and that the labour market conditions are advancing making the possibility of hiking interest rates during the first half of the year more likely. Although they still expressed that they would be ‘patient’ with making any changes, the report was taken as hawkish and outlined the divergence between the U.S economy and the rest of the world. In reaction to the report, U.S markets finished lower. At session close the S&P 500 was 1.35% lower at 2,002.16 and the Dow Jones was 1.13% lower at 17,191.37.
Asian markets declined across the region. The Nikkei lost 1.06% despite the fact that the Dollar climbed against the Yen due to weaker than expected earnings. Strong losses were seen from Hitachi Construction Machinery which lost 10.89% and Komatsu Ltd which lost 8.54%. The Hang Seng lost 1.07% as traders tracked the direction of U.S markets. China Resources Power Holdings lost 4.17%, China Resources Land lost 3.81%, China Overseas Land and Investment lost 3.78% and Lenovo Group lost 2.71%.
European markets are mixed today. The FTSE 100 is down 0.83% as shares are hit further by falling oil prices and weak earnings; Royal Dutch Shell losing 4.83%, BP losing 2.51% and Tullow Oil losing 1.79%. The DAX is down 0.48% after German CPI data missed expectations; the yearly CPI declined by 0.3% and the monthly by 1%. The CAC 40, however, is up 0.02%.
January 29, 2015 – Indices News
The FOMC statement was released yesterday and showed optimism regarding the U.S economy. Members of the committee expressed belief that the economy is improving at a ‘solid’ pace and that the labour market conditions are advancing making the possibility of hiking interest rates during the first half of the year more likely. Although they still expressed that they would be ‘patient’ with making any changes, the report was taken as hawkish and outlined the divergence between the U.S economy and the rest of the world. In reaction to the report, U.S markets finished lower. At session close the S&P 500 was 1.35% lower at 2,002.16 and the Dow Jones was 1.13% lower at 17,191.37.
Asian markets declined across the region. The Nikkei lost 1.06% despite the fact that the Dollar climbed against the Yen due to weaker than expected earnings. Strong losses were seen from Hitachi Construction Machinery which lost 10.89% and Komatsu Ltd which lost 8.54%. The Hang Seng lost 1.07% as traders tracked the direction of U.S markets. China Resources Power Holdings lost 4.17%, China Resources Land lost 3.81%, China Overseas Land and Investment lost 3.78% and Lenovo Group lost 2.71%.
European markets are mixed today. The FTSE 100 is down 0.83% as shares are hit further by falling oil prices and weak earnings; Royal Dutch Shell losing 4.83%, BP losing 2.51% and Tullow Oil losing 1.79%. The DAX is down 0.48% after German CPI data missed expectations; the yearly CPI declined by 0.3% and the monthly by 1%. The CAC 40, however, is up 0.02%.
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