Dollar falls as Powel says Fed can wait
US stock market rallied on Wednesday as Federal Reserve held rates unchanged at a range of 2.25% to 2.50% and said it would be “patient” in determining whether to proceed with further tightening of monetary policy. The S&P 500 gained 1.6% to 2681.05. The Dow Jones industrial average advanced 1.8% to 25109.10. Nasdaq composite index rallied 2.2% to 7183.08. The dollar weakening resumed as Fed chairman Powell said the central bank has the “luxury” to wait and watch: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, lost 0.4% to 95.405 and is lower currently. Futures on US stock indexes point to higher openings today.
FTSE 100 still leads European indexes gains
European stocks extended gains on Wednesday led by mining shares. GBP/USD joined EUR/USD‘s accelerated climb with both pairs currently higher. The Stoxx Europe 600 closed 0.4% higher. Germany’s DAX 30 however slid 0.3% to 11181.66 while German consumer sentiment imrpoved, France’s CAC 40 rose 1.0% despite report French economy slowed in the fourth quarter and UK’s FTSE 100 rallied 1.6% to 6941.63.
Nikkei leads Asian indices gains
Asian stock indices are mostly higher today as US and China continue trade talks in Washington. Nikkei rebounded 1.1% to 20773.49 despite continuing yen climb against the dollar. China’s stocks are gaining after official data showed manufacturing activity contraction slowed in January: the Shanghai Composite Index is up 0.4% and Hong Kong’s Hang Seng Index is 1.06% higher. Australia’s All Ordinaries Index on the other hand pulled back 0.4% as the Australian dollar continued climbing against the greenback.
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Brent rebound continues
Brent futures prices advance continues today supported by data showing a drop in Saudi crude supply to the United States. The US Energy Information Administration reported yesterday that domestic crude supplies rose by below expected 0.9 million barrels. March Brent crude rose 0.5% to $61.65 a barrel on Wednesday.
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