{"id":118063,"date":"2017-12-13T07:04:08","date_gmt":"2017-12-13T12:04:08","guid":{"rendered":"http:\/\/countingpips.com\/?p=118063"},"modified":"2018-06-01T15:48:24","modified_gmt":"2018-06-01T15:48:24","slug":"fed-decision-in-focus","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/12\/fed-decision-in-focus\/","title":{"rendered":"Fed decision in focus"},"content":{"rendered":"
December 13, 2017<\/div>
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By IFCMarkets<\/a><\/p>\n

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SP 500, Dow close at records fourth session<\/h2>\n<\/div>\n<\/div>\n

US stocks\u00a0<\/b>ended mostly higher on Tuesday as Federal Reserve started its two day meeting. The dollar strengthened on rising producer-price inflation data: 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 0.2% to 94.084. The\u00a0S&P 500\u00a0<\/em>gained 0.2% to record high 2664.11 led by telecom and financial shares.\u00a0Dow Jones\u00a0<\/em>industrial average rose 0.5% to new record 24504.80. The\u00a0Nasdaq<\/a>composite index however slipped 0.2% to 6862.32.<\/p>\n

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As Dow and SP 500 closed at records fourth session in a row the Federal Reserve will announce its decision at 20:00 CET today. A 0.25 percentage point increase in interest rates is seen as a virtual certainty. While the rate hike is fully priced in the central bank\u2019s view on economy and inflation may cause market volatility. Recent data boosted the rate hike likelihood: US producer price index jumped 0.4% in November, gaining 3.1% over the past 12 months. And November reading on small-business confidence rose to its second-highest level on record. On the negative side the US ran a $139 billion budget deficit in November, up from a $137 billion deficit in the previous month.<\/p>\n<\/div>\n<\/div>\n

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Energy and technology stocks lift European markets<\/h2>\n<\/div>\n<\/div>\n

European stock indices\u00a0<\/b>recovered on Tuesday led by energy and technology stocks. Both the\u00a0euro\u00a0<\/em>and\u00a0British Pound<\/em>fell against the dollar. The Stoxx Europe 600 climbed 0.7%. German\u00a0DAX 30\u00a0<\/a>rose 0.5% to 13183.53. France\u2019s\u00a0CAC 40<\/em>jumped 0.8% and UK\u2019s\u00a0FTSE 100\u00a0<\/em>gained 0.6% to 7500.41. Markets opened 0.1%-0.3% lower today.<\/p>\n

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Strong data failed to boost euro and Pound: The ZEW economic conditions index in Germany rose to 89.3 in December, from 88.8 in November. And UK inflation in November was at its highest since March 2012, hitting 3.1%. That was more than a full percentage point above the Bank of England\u2019s 2% target.<\/p>\n<\/div>\n<\/div>\n

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Higher oil prices buoy Asian stocks<\/h2>\n<\/div>\n<\/div>\n

Asian stock indices<\/b>\u00a0are mostly higher supported by rising oil prices.\u00a0Nikkei\u00a0<\/em>fell 0.5% to 22886.50 on stronger yen against the dollar despite a more-than-expected 5% rise in core machinery orders in October. Chinese stocks are higher: the\u00a0Shanghai Composite Index\u00a0<\/em>is up 0.7% and Hong Kong\u2019s\u00a0Hang Seng Index\u00a0<\/em>is 1.4% higher. Australia\u2019s All Ordinaries Index rose 0.1% with Australian dollar extending gains against the greenback.<\/p>\n

\"HK50\"<\/p>\n

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Oil higher on expected US crude draw<\/h2>\n<\/div>\n<\/div>\n

Oil futures prices\u00a0<\/b>are edging higher today on expected US crude inventory drawdown. The American Petroleum Institute industry group reported late Tuesday US crude stocks fell by 7.4 million barrels last week while gasoline stocks rose. Prices fell yesterday on uncertainty about North Sea pipeline outage duration after the Forties pipeline was shut down in UK. February Brent fell 2.1% to $63.34 a barrel Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.<\/p>\n

\nMarket 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 SP 500, Dow close at records fourth session US stocks\u00a0ended mostly higher on Tuesday as Federal Reserve started its two day meeting. The dollar strengthened on rising producer-price inflation data: 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 […]<\/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-118063","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/118063","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=118063"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/118063\/revisions"}],"predecessor-version":[{"id":118072,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/118063\/revisions\/118072"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=118063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=118063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=118063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}