The Fed is unlikely to change the policy rate hikes
US stock market fell on Wednesday as Federal Reserve Chairman Janet Yellen said it does not expect the failure of the central bank from raising interest rates policy in the current year. At the same time, she noted increased risks for the growth of global GDP, pointing to the deterioration in financial conditions and uncertainties in the Chinese economy. Yellen speech generally in line with expectations, although there were more restrained assessment of the prospects for the US economy than in previous statements and was declared a gradual increase in interest rates. The dollar exchange rate has fallen: the dollar index, assessing the course of the US currency against a basket of six majors currencies, fell 0.1% to 95,958.
Dow Jones Industrial Average fell 0.6% to 15914.74. S P 500 index dropped to 0.02% to 1851.86, with the highest drop showed sector raw materials and energy due to the drop in oil prices. The health sector and the technologies demonstrated growth – by 0.9% and 0.4%, respectively. Shares of Walt Disneyupali 3.8% on news of the reduction of the profit belonging to her sports media holding ESPN. Shares of Cisco Systems (CSCO) soared 7.3% to $ 24.15 after the publication of better-than-expected company earnings. Nasdaq Composite Index gained 0.4% due to higher shares of the tech sector. Today at 16:00 CET Janet Yellen will come before the Senate Banking Committee of the United States. At 14:30 CET the US Ic there are data on initial and repeated applications for unemployment benefits, a negative outlook. And 16:30 CET energy manifests volume information management reserves of natural gas.
European stock market on Wednesday showed growth, as investors bought shares at a low price after the seven-day fall. The euro fell in trading on Wednesday night to $ 1.1269 compared with $ 1.1289 late Tuesday. Stoxx Europe 600 index gained 1.9%, the German DAX 30 and the French CAC 40 also showed an increase of 1.6% each. British FTSE 100 added 0.7%. The markets have ignored the negative macro data on the reduction in the UK and France in industrial production in December compared with November. The banking sector played a loss after a serious fall in the previous days. Shares of Deutsche Bank (DBKGn) soared 10% on the news that the German bank plans to buy back its bonds worth billions of euros. Shares of UBS Group added 5.4%, shares Commerzbankvzleteli 8.2%. Today at 14:30 CET in Brussels will host a meeting of finance ministers of the Eurozone.
The Japanese Yen is growing against the dollar for the fourth consecutive session, while the Japanese market is closed today due to the Foundation Day of the state. Shares in Hong Kong today, fell sharply in the first session after the celebration of the New Year according to the lunar calendar. Exchange in Mainland China only resume trading on Monday.
Oil falls in price today after yesterday in Brent crude on Wednesday showed growth, and WTI fell to a minimum of three weeks. March futures for WTI crude oil fell by 1.8% to $ 27.45 per barrel on the New York Mercantile Exchange, as investors focused on forecasts of OPEC a slowdown in global demand, despite the decline in production and reserves of black gold in the United States. The April futures for Brent crude added 1.7% to $ 30.84 per barrel in London trading. OPEC said it expects growth in world oil demand by 1.25 million. Barrels a day to an average of 94.21 mln. Barrels per day this year, up 10,000 barrels per day below the previous forecast data. Analysts at Goldman Sachs Bank believes that until the second half of the year prices will remain below $ 40 per barrel due to the redundancy of the global oil supply and a slowdown in China’s economy.
Gold today is growing – the price on the spot market exceeded the mark of $ 1,200 to $ 1,213.00 an ounce. Gold rises in price, as it is actively buying up the central banks and investors in China. Moreover, the general reduction in risk appetite promotes growth in demand for safe metal.
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