In Asian Equity Markets were mostly higher in Thursday morning trade after the U.S. Federal Reserve left interest rates unchanged overnight but opened the door to a potential rate cut on the horizon. Mainland Chinese shares were mixed in early trade, with the Shanghai composite adding 0.2%. Hong Kong’s Hang Seng index rose 0.45%. In Japan, the Nikkei 225 gained 0.44%, while the Topix advanced 0.23% as most sectors traded higher. Over in South Korea, the Kospi was largely flat. Australia’s S&P/ASX 200 was 0.16% higher.

 

In Currency Markets the U.S. dollar was on the defensive on Thursday after the Federal Reserve signaled it was ready to lower interest rates to combat growing global and domestic risks. The Fed on Wednesday left interest rates unchanged as widely expected but said the case for lower rates was building, suggesting it could ease monetary policy as early as next month as it took stock of rising trade tensions and growing concerns about weak inflation. The euro stretched overnight gains and advanced 0.2% to $1.1248. The pound was steady at $1.2652 after gaining roughly 0.7% overnight.

 

In Commodities Markets oil prices rose over 1 percent on Thursday as official data showed U.S. crude stocks fell more than expected and as OPEC and other producers finally agreed a date for a meeting to discuss output cuts. Brent crude futures had risen 82 cents, or 1.3%, to $62.64. They dropped 0.5% on Wednesday. U.S. WTI crude futures were up 79 cents, or 1.5%, at $54.55 a barrel. WTI fell 0.26% in the previous session. After swelling to near two-year highs, U.S. crude stocks fell by 3.1 million barrels last week, compared with analyst expectations for a draw of 1.1 million barrels.

 

In US Equity Markets the S&P 500 approached a record high on Wednesday after the Federal Reserve signaled potential interest cuts later this year, reassuring investors worried that the U.S.-China trade war could stall economic growth. The S&P 500 gained 0.30% to 2,926.44. The Nasdaq Composite added 0.42% to 7,987.32. Contributing more than any other stock to advances on the Nasdaq and S&P 500, Adobe Inc jumped 5.2% after the Photoshop software provider beat analysts’ estimates for quarterly profit and revenue.

 

In Bond Markets U.S. Treasury yields retreated on Wednesday after the Federal Reserve held interest rates steady, as expected, but flagged possible rate cuts of as much as half a percentage point later this year as inflation remained below its target. U.S. yields hit session lows after the Fed decision, with those on two-year notes hitting their lowest since early December 2017, after trading higher all day. U.S. 10-year note yields fell to 2.03% from 2.05% late on Tuesday. U.S. 2-year yields slid to 1.75%, the lowest in about 1-1/2 years, from Tuesday’s 1.86%.

User Auto Log Out 3 Hours Register |