{"id":115815,"date":"2017-11-02T06:49:01","date_gmt":"2017-11-02T10:49:01","guid":{"rendered":"http:\/\/countingpips.com\/?p=115815"},"modified":"2018-06-01T15:53:32","modified_gmt":"2018-06-01T15:53:32","slug":"fed-upbeat-on-economy-as-it-holds-rates-steady","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/11\/fed-upbeat-on-economy-as-it-holds-rates-steady\/","title":{"rendered":"Fed upbeat on economy as it holds rates steady"},"content":{"rendered":"
November 2, 2017<\/div>
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By IFCMarkets<\/a><\/p>\n

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Trump expected to announce next Federal Reserve chair<\/h2>\n<\/div>\n<\/div>\n

US stocks<\/b>\u00a0closed higher on Wednesday after upbeat Federal Reserve statement. The dollar strengthened: the\u00a0live dollar index<\/a>\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, rose 0.3% to 94.795. The\u00a0S&P 500<\/a>\u00a0added 0.2% to 2579. The\u00a0Dow Jones\u00a0<\/em>rose 0.3% to 23435.\u00a0Nasdaq<\/em>composite however lost 0.2% to 6716.5.<\/p>\n

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Market sentiment was buoyed by hawkish Fed statement which said US economic activity has been rising at a \u201csolid rate\u201d instead of describing growth as \u201cmoderate\u201d like in its September statement. The upbeat statement signaled the central bank is on track for a rate hike in December. The Federal Reserve left interest rates unchanged in a range of 1%-1.25%. Investors are awaiting President Trump\u2019s decision today who will be the head of the Federal Reserve after Janet Yellen\u2019s term ends in February. The White House has notified Federal Reserve governor Jerome Powell that President Trump intends to nominate him as the next chairman of the central bank, according to a Wall Street Journal report.<\/p>\n<\/div>\n<\/div>\n

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Commodity shares lead European stocks higher<\/h2>\n<\/div>\n<\/div>\n

European stocks\u00a0<\/b>rally continued on Wednesday as commodity shares advanced after strong Chinese manufacturing data. Both the\u00a0euro\u00a0<\/em>and\u00a0British Pound\u00a0<\/em>pulled back against the dollar. The Stoxx Europe 600 rose 0.4%. Germany\u2019s\u00a0DAX 30\u00a0<\/em>jumped 1.8% to settle at record high 13465.51 after trading resumed following Tuesday\u2019s bank holiday. France\u2019s\u00a0CAC 40\u00a0<\/a>rose 0.2% while UK\u2019s\u00a0FTSE 100\u00a0<\/em>lost 0.1% to 7487.96. Indices opened lower today.<\/p>\n

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Mining shares led the rally buoyed by a report Chinese factory activity held steady in October. China is a major consumer of metals and other commodities and strong Chinese demand for commodities is a driver for resource prices. Bank of England meets today and it is widely expected short term interest rates will be raised to 0.5% from 0.25%. The interest rate decision is due at 14:00 CET and at 14:30 CET governor Carney speaks.<\/p>\n<\/div>\n<\/div>\n

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Asian indices mixed<\/h2>\n<\/div>\n<\/div>\n

Asian stock indices<\/b>\u00a0are mixed.\u00a0Nikkei\u00a0<\/em>rose 0.5% to 22539.12 led by miners while yen resumed climbing against the dollar. Chinese stocks are lower: the\u00a0Shanghai Composite Index\u00a0<\/em>is down 0.4% and Hong Kong\u2019s\u00a0Hang Seng Index\u00a0<\/em>is 0.1% off. Australia\u2019s All Ordinaries Index lost 0.1% as Australian dollar accelerated gains against the greenback.<\/p>\n

\"AU<\/p>\n

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Oil higher as US crude inventories fall<\/h2>\n<\/div>\n<\/div>\n

Oil futures prices\u00a0<\/b>are edging higher today as US crude inventories fell despite a rise in production. The US Energy Information Administration domestic crude supplies fell by 2.4 million barrels last week. Prices ended lower yesterday on concerns US crude producers will ramp up output as prices have risen recently. EIA reported 46,000 barrels a day rise in domestic output last week bringing the total output to 9.553 million. January Brent crude fell 0.7% to $60.49 a barrel on Wednesday.<\/p>\n

Market Analysis provided by IFCMarkets<\/a><\/p>

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Note:
\nThis overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or \u0430 recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.<\/p>\n","protected":false},"excerpt":{"rendered":"

By IFCMarkets Trump expected to announce next Federal Reserve chair US stocks\u00a0closed higher on Wednesday after upbeat Federal Reserve statement. The dollar strengthened: the\u00a0live dollar index\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, rose 0.3% to 94.795. The\u00a0S&P 500\u00a0added 0.2% to 2579. The\u00a0Dow […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-115815","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/115815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=115815"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/115815\/revisions"}],"predecessor-version":[{"id":115823,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/115815\/revisions\/115823"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=115815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=115815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=115815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}