News Worms
News Worms


Dovish Fed boosts emerging assets, stocks at 20-month high

Dovish Fed boosts emerging assets, stocks at 20-month high

Asian stocks crawled higher in early trade on Friday, set for its best week since September, while the dollar continued the slide that began after the Federal Reserve indicated it was unlikely to speed up monetary tightening.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.11% at 100.19, still close to a five-week low of 99.97 hit earlier in the day.

On Wednesday, the loonie rallied the most in a year as the Fed raised interest rates as expected but central bank officials stuck to their outlook for two more rate hikes this year and three in 2018, a more gradual path than some investors had expected.

BOND YIELDS: U.S. Treasury yields recovered some of their losses from the prior day. The yield on the 10-year Treasury note rose to 2.53 percent from 2.50 percent late Wednesday.

The S&P 500 index lost 2.36 points to 2,379.02 and the Nasdaq composite index is down 7.65 points to 5,893.11.

That helped Amsterdam's AEX stock index climb to its highest level in more than nine years, while both Germany's DAX and France's CAC 40 hit their highest levels since mid-2015 as fears eased that the euro zone was heading inexorably towards a break-up.

US stock indexes took a small step back Thursday, while bond yields recovered some of their sharp losses from Wednesday.

Overnight, Wall Street was subdued following strong gains after the Fed's rate decision.

Europe markets also focused on Dutch elections, where anti-EU firebrand candidate Geert Wilders is providing the latest test of anti-establishment and anti-EU sentiment.

The euro EUR=EBS touched its highest level in 5-1/2-weeks on Friday. Gold rose $27.90, or 2.3%, to $1,228.60 an ounce, silver rose 46 cents to $17.39 an ounce and copper rose 2 cents to $2.67 a pound.

The sterling to Dollars rate jumped from lows of 1.226 to 1.229 as a outcome. The Bank of England held its interest rates at record lows.

Propelled by dollar weakness and rising commodity prices, emerging currencies also sailed higher.

USA crude CLc1 rose 0.25 percent to $48.87 a barrel after losing 0.2 percent on Thursday.

Yields ticked higher as bond prices fell.

Data released Wednesday showed the Consumer Price Index rose 0.1% in February (http://www.marketwatch.com/story/inflation-posts-smallest-gain-since-last-summer-cpi-shows-2017-03-15), the smallest increase since last summer. The lack of a reaction in markets before and after the election, however, shows that few investors were expecting the far right to gain any significant power in the Netherlands' heavily-fragment parliamentary system.

follow

editors' picks

March 19, 2017
Illini hiring Oklahoma State's Brad Underwood
Underwood spent his first year at K-State in the role of director of operations for then-head coach Bob Huggins. The Cowboys were a top-10 team in scoring during the regular season, averaging 85.5 points per game.

March 19, 2017
Intruder scaled fence to enter White House grounds Friday night
He had the mace in a jacket pocket and a book bag with a book on the President, a U.S. passport and an Apple laptop computer. The Secret Service said Tran carried a backpack that was X-rayed and searched and found to be free of hazardous materials.

March 19, 2017
Jesy Nelson confirmed her new relationship with a sweet Insta snap
Things are moving to the next level, when it comes to Jesy Nelson and her previously rumored boyfriend Chris Clark. Rumours of a feud between Perrie Edwards and Jesy Nelson , and speculation of a split, are "nonsense".

March 19, 2017
Jio, Airtel, Idea, Vodafone
There's another offer of Rs. 499, the Jio Prime recharge pack, which provides 56GB data to prepaid users, with daily cap of 2GB. As a counter to Reliance Jio , the state-run telecom network BSNL (Bharat Sanchar Nigam Limited) announced the new plan.

March 19, 2017
SpaceX launches communications satellite into orbit
Last year, SpaceX received the first NSS launch services contract , worth around $82m, to launch GPS III-2 satellite in May 2018. The Falcon 9 used for this morning's mission was noticeably different from what we're used to seeing fly out of the spaceport.

March 19, 2017
Elena Vesnina recovers to beat Venus Williams at Indian Wells
What attracted the most attention was the match between Rodger Federer and Rafael Nadal. Wednesday's match was just the fifth time they weren't opposing each other in a final.

March 19, 2017
Christian pastor uncovers big diamond
A pastor in Sierra Leone has found one of the world's largest uncut diamonds and passed it to the country's president. The president thanked the chief of the Tankoro area where the stone was found for not smuggling it out of the country.

March 18, 2017
Franklin Templeton's Zahn: French bonds still unattractive on election risks
Marine Le Pen , the FN's leader, seeks to win the first round of French presidential election in late April. Macron, who is strongly pro-EU, represents "the opposite of what Brexit stands for", according to Le Pen.

March 18, 2017
Russian Federation denies role in alleged cyber attacks in US
Another, Alexsey Belan , is on the list of the FBI's most wanted cyber criminals and has been indicted multiple times in the U.S. Baratov is in custody in Canada, according to the Toronto police, while Dokuchaev remains in Russian Federation .

March 18, 2017
IN job opening could make IL coaching search trickier
So Izzo's reaction to the news that Crean was sacked after nine seasons as the head coach at IN on Thursday was understandable. However, that fifth banner came 30 years ago and it's been 15 years since the Hoosiers' last national title appearance.