Wednesday, March 18, 2015

UPDATE 2-Wall Street jumps, relieved by the Fed – Challenges.fr

* The Dow rose 1.27%, the S & amp; P 500 1.22% Nasdaq 0.92%

The Fed suggests that the rise in interest rates will be prudent

* The dollar fell, oil prices rebounded

* The energy values ​​Featured

* The bond yields decline (with update final closure of the S & amp; P 500, clarification, volumes, oil and bond market)

by Caroline Valetkevitch

NEW YORK, March 18 (Reuters) – The New York Stock Exchange ended sharply higher Wednesday after the announcement by the Federal Reserve revised down its growth forecasts and inflation , which suggests that the rise in interest rates, although it begins in the coming months will be conducted with caution.

The Dow Jones index of leading blue chips 30 of the American side has gained 227.11 points, or 1.27%, to 18,076, 19. The Standard & amp; Poor’s-500, wider, took 25.22 Points (+ 1.22%) to 2,099.50 and the Nasdaq rose 45.39 Commposite point (+ 0.92%) to 4,982.83.

At the end of its monetary policy meeting, the Fed unsurprisingly removed from its statement the reference to an attitude “patient” in terms of timing at which it will start rising rates.

But it also revised down its forecast of the level of interest rates in the coming years and its economic forecasts for the United States.

There have driven down the dollar , which favored the rise of oil prices. The greenback has given up 3% against the euro, its biggest drop in one sitting for six years. Against a basket of reference currencies, it showed in the late afternoon a decline of 2%.

US crude oil barrel (WTI) took the opportunity to go back to 44.70 dollars, up nearly 3% and Brent jumped more than 5% above $ 56

The 10 major sectors of the S & amp;. P 500 ended in the green but these are the values ​​of the energy that the best performance with a gain of 2.9% on the session, ahead of the utilities (“utilities”) (+ 2.72%), generally favored by low rates.

Within the Dow, Chevron and Exxon Mobil oil companies took 3.42% and 2.37% respectively.

THE BOND YIELDS

” by deleting the word ‘patient’ of its indications, (the Fed) has removed an artificial limit its flexibility, leaving the field to economic indicators to dictate its future decisions, “said David Joy, head of market strategy ‘Ameriprise Financial.

“At the same time, lowering its forecast the rate at which rates rise, it sends a clear message that she is in no hurry to raise interest rates because it notes that the economy is growing moderately. “

The future rate suggests that traders now believe 60% probability of a rate hike in October, according to CME FedWatch.

In the bond market, the yield on ten-year US fell to 1.92% and yields on two and three years suffered their biggest daily decline since March 2009.

“The market expected a tone of ‘dove’ but it was more than expected, “said Priya Misra, head of US rates strategy at Bank of America Merrill Lynch. “The interpretation ‘hawk’ of the deletion of the word ‘patient’ has been destroyed.”

At values ​​on Wall Street, FedEx dropped 1.37% after presenting an annual forecast below estimates analysts.

Oracle gained 2.94% after its quarterly results, though marked by stagnation in sales and a slight decline in profits, which he compensated by an increase its dividend .

Alibaba took 0.11% in large volumes while qu’expire Wednesday a period of “lock-up” that prevented some investors to sell their shares since IPO last year.

About 7.9 billion shares changed hands on various US markets, against 6.6 billion on average per day since the beginning of the month by BATS Global Markets.

(with Herbert Lash and Rodrigo Campos, Marc Angrand for the French service)

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