U.S markets declined as traders assessed the FOMC statement. Traders initially reacted to the fact that economic projections were downgraded and took the Fed to be more dovish, shifting expectations for the hike to September. However, the Fed dropped the term ‘patient’ from their pledge and discussed that any changes will be dependent on monthly data. Specifically, the committee stated that they will wait for further improvement in the labour market and yesterday, Initial Jobless claims beat expectations and came out at 291K when expected to be 292K. Once again, traders are not sure and it is still moderately likely that rates will be hiked in June. At session close, the S&P 500 was 0.5% lower at 2,089.27 and the Dow jones was 0.7% lower at 17,959.03.
Asian markets were mixed today. The Nikkei added 0.43% as the Dollar rebounded against the Yen and climbed to around 120.7 by the end of the session. In addition the Yen weakened following the Japanese monetary policy meeting minutes. The minutes showed that members believe that it is unlikely that they will reach the target inflation rate in a short period of time. They also showed that officials were becoming concerned with consumer prices. Expanding stimulus was discussed although the government is becoming worried that the falling Yen could damage spending. Yahoo Japan Corp added 6.25%, Toshiba Corp added 4.67% and J Front Retailing Co added 3.79%. The Hang Seng lost 0.33% as traders tracked the direction of U.S markets. The interest rate hike also remained in focus as tightening in the U.S could be transmitted to Hong Kong, as the Hong Kong dollar is pegged to the U.S. dollar. Li & Fung lost 7.6%, China Resources Power Holdings lost 2.84% and Link REIT lost 2.55%.
European markets are higher today due to hopes of progress in Greek talks. European leaders released that Greece is trying to create a new reform plan in the coming days. Currently the FTSE 100 is 0.28% higher, the DAX is 1.3% higher and the CAC 40 is 0.59% higher. In the FTSE, CRH PLC is up 6.51%, Anglo American PLC is up 1.77% and International Consolidated Airlines Group is up 1.46%. In the DAX, BASF SE is up 2.32%, E.ON is up 2.26% and Deutsche Bank is up 2.2%.
March 20, 2015 – Indices News
U.S markets declined as traders assessed the FOMC statement. Traders initially reacted to the fact that economic projections were downgraded and took the Fed to be more dovish, shifting expectations for the hike to September. However, the Fed dropped the term ‘patient’ from their pledge and discussed that any changes will be dependent on monthly data. Specifically, the committee stated that they will wait for further improvement in the labour market and yesterday, Initial Jobless claims beat expectations and came out at 291K when expected to be 292K. Once again, traders are not sure and it is still moderately likely that rates will be hiked in June. At session close, the S&P 500 was 0.5% lower at 2,089.27 and the Dow jones was 0.7% lower at 17,959.03.
Asian markets were mixed today. The Nikkei added 0.43% as the Dollar rebounded against the Yen and climbed to around 120.7 by the end of the session. In addition the Yen weakened following the Japanese monetary policy meeting minutes. The minutes showed that members believe that it is unlikely that they will reach the target inflation rate in a short period of time. They also showed that officials were becoming concerned with consumer prices. Expanding stimulus was discussed although the government is becoming worried that the falling Yen could damage spending. Yahoo Japan Corp added 6.25%, Toshiba Corp added 4.67% and J Front Retailing Co added 3.79%. The Hang Seng lost 0.33% as traders tracked the direction of U.S markets. The interest rate hike also remained in focus as tightening in the U.S could be transmitted to Hong Kong, as the Hong Kong dollar is pegged to the U.S. dollar. Li & Fung lost 7.6%, China Resources Power Holdings lost 2.84% and Link REIT lost 2.55%.
European markets are higher today due to hopes of progress in Greek talks. European leaders released that Greece is trying to create a new reform plan in the coming days. Currently the FTSE 100 is 0.28% higher, the DAX is 1.3% higher and the CAC 40 is 0.59% higher. In the FTSE, CRH PLC is up 6.51%, Anglo American PLC is up 1.77% and International Consolidated Airlines Group is up 1.46%. In the DAX, BASF SE is up 2.32%, E.ON is up 2.26% and Deutsche Bank is up 2.2%.
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