American markets yesterday gained after the FOMC decision to keep interest rates unchanged and continue tapering the stimulus by 10 billion dollars. Essential, the Fed reaffirmed its previous policy goals and noted in their statement that the US economy was growing and that the labor market was expected to recover over the next few months. On these statements and ideas, investors become more bullish and were able to ignore any tension stemming from the crisis in the Middle East. The Dow climbed 0.58%, the S&P climbed 0.77%, and the Nasdaq climbed 0.59%.
Asian markets have also gone up for the most part on yesterday’s FOMC decision. Investors like to see strength in the US economy when valuing Asian equities due to the fact that the US is a primary consumer of Asian manufactured goods. Further helping Asian markets climb was a pledge by Chinese Premier Li that the middle kingdom would reach its targets for economic expansion. In light of all this, the NIkkei has risen 1.62%, the Hang Seng dropped 0.06%, and the ASX 200 rose 1.59%.
European markets are climbing despite bad British Retail Sales data for the same reason as other markets: optimism from the Federal Reserve. More importantly, however, was that the Fed lowered the long term target for interest rates from 4% to 3.75%, move which makes equities more appealing and showing that the Fed is committed to achieving its growth and inflation objectives. On another note, there has not been a lot of Eurozone data today, and so residual sentiment form events in the US may continue to move markets in Europe. Now, the Stoxx 50 is up 1.23%, the FTSE is up 0.83%, and the DAX is up 0.84%.
June 19, 2014 – Indices News
American markets yesterday gained after the FOMC decision to keep interest rates unchanged and continue tapering the stimulus by 10 billion dollars. Essential, the Fed reaffirmed its previous policy goals and noted in their statement that the US economy was growing and that the labor market was expected to recover over the next few months. On these statements and ideas, investors become more bullish and were able to ignore any tension stemming from the crisis in the Middle East. The Dow climbed 0.58%, the S&P climbed 0.77%, and the Nasdaq climbed 0.59%.
Asian markets have also gone up for the most part on yesterday’s FOMC decision. Investors like to see strength in the US economy when valuing Asian equities due to the fact that the US is a primary consumer of Asian manufactured goods. Further helping Asian markets climb was a pledge by Chinese Premier Li that the middle kingdom would reach its targets for economic expansion. In light of all this, the NIkkei has risen 1.62%, the Hang Seng dropped 0.06%, and the ASX 200 rose 1.59%.
European markets are climbing despite bad British Retail Sales data for the same reason as other markets: optimism from the Federal Reserve. More importantly, however, was that the Fed lowered the long term target for interest rates from 4% to 3.75%, move which makes equities more appealing and showing that the Fed is committed to achieving its growth and inflation objectives. On another note, there has not been a lot of Eurozone data today, and so residual sentiment form events in the US may continue to move markets in Europe. Now, the Stoxx 50 is up 1.23%, the FTSE is up 0.83%, and the DAX is up 0.84%.
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