Market Buzz: Federal Reserve continues stimulus
Moscow floors made slight gains as both the MICEX and RTS indices climbed towards recovery. The MICEX gained 0.13 percent and closed at 1,377.69 and the dollar-based RTS finished strong up 0.58 percent at 1,320.95.
One of the strongest performers on the RTS index was Sberbank,
which despite a plagiarism scandal that prompted their chief
research editor to step down, gained 0.88 percent to trade at
95.39.
The Russian ruble gained against the dollar by 0.23 percent, and
is priced at 32.9275 rubles to the dollar.
WTI crude gained for a second day on surprisingly strong Chinese
manufacturing data, increasing 0.45 percent to $105.50 per
barrel. Brent is nearing $108 per barrel, and has gained 0.18
percent to $107.89. Oil and natural gas exports account for
roughly 50 percent of Russia’s budget.
Equities on the New York Exchange were mixed on positive GDP
results and the Federal Reserve’s statement they will continue
buying $85 billion in treasury bonds and mortgage debt, a sigh of
relief for markets and investors.
A decision to dismantle the $85 million per month bond buying
program would hit stocks hard and lower prices, but would
strengthen them long-term.
At market close, the Dow Jones dipped 0.14 percent, the S&P
500 index dropped 0.01 percent, and the Nasdaq Composite Index
climbed 0.27 percent.
European markets are trading high on positive euro zone unemployment data.
Amsterdam’s Euro Stoxx 50 is up 0.32 percent at 2,768.15,
Germany’s DAX has gained 0.06 percent to 8,275.97, France’s CAC
40 climbed 0.06 percent, and London’s FTSE 100 index is trading
up 0.76 percent at 6,621.06.
In Switzerland, markets are closed for a national holiday.
The UK will release manufacturing activity data, and the Bank of
England and European Central Bank will publish their monthly
monetary policy statements.
Asian stocks are also mostly higher following Chinese PMI data.
The Shanghai Composite soared 1.64 percent after the data was
released, and the Nikkei jumped 2.66 percent, and is currently up
0.76 percent. The Hong Kong Hang Seng index added 0.59 percent.
Australia’s ASX 200 benchmark slipped 0.04 percent.