Fed Raises Rates And Signals On Course For Another Hike
IFC Markets | Jun 15, 2017 07:27AM ET
S&P 500 and Dow close at records
US stock indices closed lower on Wednesday after the Federal Reserve raised the federal funds rate and indicated it would start reducing its balance sheet “this year”. The dollar ended little changed: the FTSE 100 added 0.3% to 7520.73.
Asian stocks slip
Asian stock indices are mostly lower today following a more hawkish than expected Federal Reserve statement. Lower May inflation and retail sales data earlier in the day spurred expectations the central bank may signal a slowing of further tightening pace, but policy makers’ projections of the rate hike path indicated they still expect one more rate hike by the end year. Nikkei closed 0.3% lower at 19831.82 today with the yen extending gains against the dollar. The Chinese stocks are mixed as China's central bank left interest rates unchanged : the Shanghai Composite Index is up 0.06% while Hong Kong’s Hang Seng Index is 1% lower. Australia’s ASX All Ordinaries is down 1.1% as Australian dollar extended gains against the greenback and lower oil prices hurt energy and commodity stocks.
Oil down on oversupply concerns
Oil futures prices are extending losses today as concerns mount about OPEC’s ability to cut output and global oversupply continues with US output projected to rise more. OPEC output has increased after the May 25 extension of the output cut agreement till the end of first quarter next year as output increased in Nigeria, Libya and Iraq. The US Energy Information Administration raised its prediction for US output growth in 2017 to 460000 barrels per day (bpd) from a predicted decline of 80000 bpd in December. Oil prices fell to seven month low on Wednesday after US government data showed a smaller than expected decline in domestic supplies and an increase in gasoline stockpiles and crude production. The US Energy Information Administration reported that US crude supplies fell by 1.7 million barrels last week while gasoline stockpiles rose 2.1 million barrels. August Brent crude fell 3.5% settling at $47.00 a barrel on London’s ICE Futures exchange on Wednesday.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.