The FOMC statement was released yesterday. The Fed stated that the economy continues to expand at a moderate pace but inflation is still below target, partly due to declining energy prices. They reaffirmed that the current rate of 0- 0.25% is appropriate and that any change will be reliant on future data. If the market continues to improve at a faster rate, it is likely that the rate hike will occur sooner than currently estimated. U.S. markets reacted positively, making strong gains. Energy companies also climbed as oil prices rebounded. At session close the S&P 500 was 2.04% higher and the Dow Jones was 1.69%higher.
Asian markets climbed across the region. The Nikkei added 2.32% as the Dollar soared against the Yen following the release of the statement. The Dollar was trading around ¥118.7 as the close of the Asian session, compared to ¥116.9 at the open. Many companies benefited from the weaker Yen; Nippon Suisan Kaisha climbed 7.18%, Toyo Seikan Group added 7.08%and Dentsu Inc added 6.92%. The Hang Seng added 1.09% as sentiment spilled over from the U.S session. Tencent Holdings added 6.27%, Galaxy Entertainment added 3.21% and Power Assets Holdings added 2.44%.
European markets are higher today after strong German Ifo data. Markets also welcomed hawkish news from the Federal Reserve but also focused on Yellen’s conference where she reiterated the word ‘patient’ many times. Currently, the CAC 40 is up 2.62% while Germany’s DAX is up 2.15% and London’s FTSE 100 is up 1.29%.
December 18, 2014 – Indices News
The FOMC statement was released yesterday. The Fed stated that the economy continues to expand at a moderate pace but inflation is still below target, partly due to declining energy prices. They reaffirmed that the current rate of 0- 0.25% is appropriate and that any change will be reliant on future data. If the market continues to improve at a faster rate, it is likely that the rate hike will occur sooner than currently estimated. U.S. markets reacted positively, making strong gains. Energy companies also climbed as oil prices rebounded. At session close the S&P 500 was 2.04% higher and the Dow Jones was 1.69%higher.
Asian markets climbed across the region. The Nikkei added 2.32% as the Dollar soared against the Yen following the release of the statement. The Dollar was trading around ¥118.7 as the close of the Asian session, compared to ¥116.9 at the open. Many companies benefited from the weaker Yen; Nippon Suisan Kaisha climbed 7.18%, Toyo Seikan Group added 7.08%and Dentsu Inc added 6.92%. The Hang Seng added 1.09% as sentiment spilled over from the U.S session. Tencent Holdings added 6.27%, Galaxy Entertainment added 3.21% and Power Assets Holdings added 2.44%.
European markets are higher today after strong German Ifo data. Markets also welcomed hawkish news from the Federal Reserve but also focused on Yellen’s conference where she reiterated the word ‘patient’ many times. Currently, the CAC 40 is up 2.62% while Germany’s DAX is up 2.15% and London’s FTSE 100 is up 1.29%.
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