(Boursier.com) – Rising US stock markets continued Wednesday after about “dove” of the president of the Fed yesterday, concerning the coming increases in policy rates. The dollar fell, a positive for the US multinational accounts. Oil prices jumped 4% in morning before erasing its gains and finish close to balance …
At the close, the Dow Jones gained 0.47% to 17,717 points, while the broader index S & amp; P 500 finished up 0.44% to 2,064 points and the Nasdaq Composite index, rich in values ”techie” and “biotech”, rebounded 0 47% at 4869 points supported in particular by the action Apple , which jumped 2.4% Tuesday, Wednesday and rose further by 1.8%.
European and Asian stock markets also benefited Wednesday about Janet Yellen. The boss of the Fed stressed the central bank’s cautious approach to risks to global growth away the specter of an early recovery rate of “fed funds”. The EuroStoxx 50 index gained 1.3%, while in China, the Shanghai Composite jumped 2.8%.
Before the publication of the employment figures, expected Friday the report of the ADP on private sector said Wednesday that jobs created reached 200,000 in March, against a market consensus of 195,000 and a level of 205,000 a month before.
oil makes a rebound, the dollar continues to reflux
the oil has the yoyo, strongly rebounding more than 4%, taking advantage of the falling dollar (which makes less expensive purchases of raw materials). However, a barrel of crude WTI lost momentum during the session following the release of data showing that the global oversupply is still far from being resolved … At the close, WTI crude oil barrel ended up 0 , 1% to $ 38.32, putting still end 5 consecutive sessions of decline.
According to a survey conducted by the agency ‘Reuters’, the OPEC production, which was supposed stabilize in January, after the Doha agreement of February 16, continued to rise in March, albeit slightly, to 32.47 million bpd in March, against 32.37 million bpd in February. The production of Iran has increased the country heard well enjoy the lifting of Western sanctions in January. In addition, southern Iraq conducted last month of near record exports.
Furthermore, the latest weekly report on US oil inventories, released Wednesday, showed that they had a new once rose to a level not observed at this time of year!
After the cautious statements of Janet Yellen on Tuesday on the pace of the rise in US interest rates, the dollar continued its decline against a basket of international currencies, including the euro. The euro, which had already jumped 0.9% Tuesday against the dollar has further appreciated 0.4% Wednesday to finish above $ 1.13, to $ 1.1334, its highest level since October 2015.
in the bond markets, the yield of T-Bond for 10 years, that had plunged 9 basis points on Tuesday after the speech of Ms. Yellen, took over 2 bps to 1.82 %. Finally, volatility as measured by the VIX Index (also known as the “fear index”), still declined 2%, to finish at 13.54.
The US markets are waiting for two or even a single rate hike in 2016
Tuesday in the US, Janet Yellen hinted that the Fed will not raise its key interest rates at its meeting on 26 and 27 April. It considered in particular that “developments abroad mean that we will certainly have to reach our employment and inflation targets, follow a slightly lower path for the federal funds rate than we anticipated in December. ” In December, the Fed plans to achieve 4 rate hikes this year, but the markets now expect more than two or even one.
So, futures on the rate of “fed funds “show that traders now rule out a rate hike in April, and are also a minority (47%) to expect one rate hike by November 2016 … Meanwhile, the chairman of the Fed Chicago, Charles Evans, said he did “not fear” a climb “for a brief period” of inflation above the 2% target for the Fed. The Fed could well tolerate a temporary surge in inflation, which does not necessarily incentive to accelerate the normalization of policy rates.
As for values, the action Apple a gained 1.7% despite confirmation of a bug in the latest version of its iOS operating system. The problem will be “soon” set promised the firm at the apple.
The title Boeing yielded 1.76%, signing the largest drop in the Dow Jones. The US aerospace group will remove about 4,000 jobs in its commercial aircraft division by the end of the semester to improve profitability and efficiency.
Lululemon jumped 10 7%, the Canadian retailer yoga clothes have announced quarterly results exceeded expectations, thanks to good sales during the holiday season. The American giant of the cruise, Carnival has also benefited (+ 5.5%) performed better than expected during its first fiscal quarter.
Among the pharmaceutical Valeant rebounded by 5%. The Canadian laboratory was confident in its current position of liquidity and cash flow generation capacity for the rest of the year. Thus, the group said well positioned to meet its obligations, despite recent warnings from the SEC, citing a risk of default on the debt.
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