Markets React to FOMC Holding Off on Interest Rate Rise, Regulator Clears Poundland Acquisition
September 18, 2015 6:28 am
Asian shares rose on Friday after the U.S. Federal Reserve held off on raising interest rates, but gains were capped by renewed concerns about the health of the global economy, in particular China. However, Japan’s Nikkei average fell by nearly 2 percent to 18070.21.
However, in terms of currencies USD was on the defensive, having fallen more than 1 percent after the Fed’s decision, while U.S. bond yields plunged, erasing their sharp rises in the past couple of days.
Over in the FX markets the Dollar index against a basket of major currencies was little changed at 94.574 on Friday, having fallen to a three-week low of 94.360 on Thursday. The Yen also edged up to 119.77 to the Dollar from Thursday’s low at 120.995 on the back of a dovish FOMC meeting.
The Euro jumped to a three-week high of $1.14415 on Thursday before easing to $1.1403, while GBP also hit a three-week high of $1.5628 before retreating slightly to $1.5575
Commodity prices were relatively well-supported, with U.S. crude futures at $46.77 per barrel, down slightly from Thursday’s high of $47.71 but still up almost 5 percent on the week. In the meantime, gold hit a two-week high of $1,136 per ounce and last stood at $1,128.50.
In the UK Equity market, Britain’s competition regulator has formally cleared discount retailer Poundland’s proposed £55 million acquisition of smaller rival 99p Stores. Poundland Shares are trading at 327.63, up by more than 3%.
Asian shares rose on Friday after the U.S. Federal Reserve held off on raising interest rates, but gains were capped by renewed concerns about the health of the global economy, in particular China. However, Japan’s Nikkei average fell by nearly 2 percent to 18070.21.
However, in terms of currencies USD was on the defensive, having fallen more than 1 percent after the Fed’s decision, while U.S. bond yields plunged, erasing their sharp rises in the past couple of days.
Over in the FX markets the Dollar index against a basket of major currencies was little changed at 94.574 on Friday, having fallen to a three-week low of 94.360 on Thursday. The Yen also edged up to 119.77 to the Dollar from Thursday’s low at 120.995 on the back of a dovish FOMC meeting.
The Euro jumped to a three-week high of $1.14415 on Thursday before easing to $1.1403, while GBP also hit a three-week high of $1.5628 before retreating slightly to $1.5575
Commodity prices were relatively well-supported, with U.S. crude futures at $46.77 per barrel, down slightly from Thursday’s high of $47.71 but still up almost 5 percent on the week. In the meantime, gold hit a two-week high of $1,136 per ounce and last stood at $1,128.50.
In the UK Equity market, Britain’s competition regulator has formally cleared discount retailer Poundland’s proposed £55 million acquisition of smaller rival 99p Stores. Poundland Shares are trading at 327.63, up by more than 3%.
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