Nikkei Hits 15 Year High, Fed Dampens Speculation on Early Interest Rate Hike
February 19, 2015 6:40 am
The U.S. Dollar nursed modest losses in Asia on Thursday while bonds held on to heftier gains as investors scaled back expectations on how fast, and how far, the Federal Reserve might raise interest rates in coming months and years. Japan’s Nikkei rose 0.5% to heights last seen in 2000, helped by gains in financial and shipping companies. Data showed the country’s exports grew at the fastest annual pace since late 2013 as a weaker Yen made it more competitive. The Dow and S&P 500 ended slightly lower on Wednesday after a drop in energy shares but declines were limited by minutes from the latest Federal Reserve meeting, which showed policymakers are concerned about raising interest rates too soon. The Dow fell 17 points to 18,029, the S&P500 closed 0.6 points lower at 2,099.
The Euro rose 0.2% to $1.1422 following a pull back from the previous day’s low of $1.1334. The Euro has traded in a 2-cent range for more than three weeks. The Greenback shed 0.2% to 118.58 Yen after coming down from a peak of 119.41 overnight. Sterling traded at $1.5452, holding to a swathe of territory won overnight when it hit a 1-1/2 month high of $1.5480 after data showed strong growth in British wages.
U.S. crude stockpiles swelled by five times more than forecast last week. U.S crude was down $1.51 at $50.63 a barrel, from a top of $53.41 on Wednesday. Brent crude futures for April fell below $60 a barrel, trading at $59.54 a barrel, down 99 cents.
There is more M&A activity in the equity sector this morning after Beverage can maker Ball Corp is close to a deal to buy UK-based Rexam Plc this week. Rexam is currently 6% up at 563p per share in early trade.
The U.S. Dollar nursed modest losses in Asia on Thursday while bonds held on to heftier gains as investors scaled back expectations on how fast, and how far, the Federal Reserve might raise interest rates in coming months and years. Japan’s Nikkei rose 0.5% to heights last seen in 2000, helped by gains in financial and shipping companies. Data showed the country’s exports grew at the fastest annual pace since late 2013 as a weaker Yen made it more competitive. The Dow and S&P 500 ended slightly lower on Wednesday after a drop in energy shares but declines were limited by minutes from the latest Federal Reserve meeting, which showed policymakers are concerned about raising interest rates too soon. The Dow fell 17 points to 18,029, the S&P500 closed 0.6 points lower at 2,099.
The Euro rose 0.2% to $1.1422 following a pull back from the previous day’s low of $1.1334. The Euro has traded in a 2-cent range for more than three weeks. The Greenback shed 0.2% to 118.58 Yen after coming down from a peak of 119.41 overnight. Sterling traded at $1.5452, holding to a swathe of territory won overnight when it hit a 1-1/2 month high of $1.5480 after data showed strong growth in British wages.
U.S. crude stockpiles swelled by five times more than forecast last week. U.S crude was down $1.51 at $50.63 a barrel, from a top of $53.41 on Wednesday. Brent crude futures for April fell below $60 a barrel, trading at $59.54 a barrel, down 99 cents.
There is more M&A activity in the equity sector this morning after Beverage can maker Ball Corp is close to a deal to buy UK-based Rexam Plc this week. Rexam is currently 6% up at 563p per share in early trade.
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