Thursday’s Asian share is reported by the Federal Reserve Later this year, we may start easing special measures to support the economy.
Shares rose in Hong Kong, Shanghai, Australia and Taiwan, but fell in South Korea and Malaysia. US futures were higher. The market has closed in Tokyo.
The US central bank has indicated that it could start raising its key rates by the end of next year, earlier than expected three months ago. He added that if the economy continues to improve, it is likely to start slowing the pace of monthly bond purchases “immediately”. The Fed is buying bonds throughout the pandemic to keep long-term interest rates low.
The market was reassured after Evergrande, one of the largest private real estate developers in China. He said he planned to pay on Thursday. This may have allayed concerns about heavily indebted Chinese real estate developers and the potential ripple effects of possible defaults.
In Hong Kong, the Hang Seng index rose 2% to 24,745.96. The Shanghai Composite Index rose 0.6% to 3,651.27. The Australian S & P / ASX 200 jumped 1% to 7,368.40. South Korea’s Kospi fell 0.7% to 3,117.99.
On Wall Street, the S&P 500 rose 1%, beating four straight days of straight losses. The benchmark index initially rose 1.4% after the Federal Reserve issued a statement at 2:00 p.m. Eastern Standard Time.
Other major indices also jumped, but lost some of their upside late in the afternoon. The Dow Jones Industrial Average rose 1% to 34,258.32. The Good Equity index temporarily rose 520 points. The Nasdaq Composite Index rose 1% to 14,896.85.
Bond yields mostly increased. After the Federal Reserve’s announcement, 10-year government bond yields fluctuated up and down, but held steady at 1.31%. Yields affect the interest rates on mortgages and other consumer loans.
Analysts said the Fed’s policy update was in line with market expectations. The VIX, a measure of the volatility investors expect from the S&P 500, fell about 14% after the Fed’s statement.
Brian Jacobsen, Senior Investment Strategist at Wells Fargo Asset Management, said:
In a press conference, Federal Reserve Chairman Jerome Powell said the Fed would start cutting its monthly bond purchases as early as November if the labor market continued to improve steadily. paddy field.
Gene Goldman, chief investment officer of Cetera Financial Group, revealed that the Fed’s shift has started to raise concerns about inflation.
“Our concern is that the Fed continues to stick to the idea that this is a temporary step, but there is no evidence that it is a temporary step,” he said. he declares.
Goldman added that a wider range of markets may be subject to review as economic growth slows and inflation continues to rise. “Our concern for the economy and the market in general is the first. We are at all the summits, ”he said.
September was a difficult month for stocks. The S&P 500 is down 2.8%.
In addition to concerns about the potential change in Fed policy, investors are concerned about the increase in COVID-19 cases due to the impact of highly contagious delta mutations and rising inflation on businesses and consumers. I am.
History does not provide a good guide to how the market is reacting to the Fed’s easing support for the economy. This is mainly because it was a very rare event.
In the summer of 2013, Treasury yields soared after the Fed chairman suggested bond buying programs might start to slow. Surprised investors assumed rate hikes would continue quickly, pushing the Treasury yield from less than 2.20% to 3% in three months.
However, after the Fed announced in December that it would cut its buying, the 10-year rate did an about-face, despite the Fed’s reduced support for programs to keep interest rates low.
Share prices have remained relatively stable despite the turmoil in the bond market.
The 10-year rate fell from 1.70% in March and has been relatively stable between 1.20% and 1.30% since July. Powell has repeatedly pointed out how slow the Fed will go from cutting bond purchases to increasing interest rates.
On Wednesday, more than 80% of stocks in the S&P 500 Index rose. This is mainly due to tech stocks, banks and companies that depend on direct consumer spending. Energy stocks posted a solid gain as US crude oil prices rose 2.4%. The inventory of communications and utilities has declined.
Small stocks have performed better than the market at large. The Russell 2000 Index rose 1.5% to 2,218.56.
Netflix rose 3.1% after streaming entertainment services acquired the work of Roald Dahl, the late British writer of famous children’s books such as “Charlie and the Chocolate Factory”.
Facebook fell 4% after it said in blog posts that social networks underreported web conversions by users of Apple mobile devices by about 15% following changes in the operating system of Apple.
FedEx plunged 9.1%, the biggest drop in stocks in the S&P 500. Significantly high costs reported Even as transport demand increases. Many industries are struggling with higher costs due to a mix of labor and supply chain issues.
In another trade Thursday, benchmark U.S. crude fell 7 cents a barrel to $ 72.16 in electronic trading on the New York Mercantile Exchange. It went from $ 1.74 to $ 72.23 a barrel on Wednesday.
Brent crude, the international standard, fell 8 cents a barrel to $ 75.31.
The US dollar fell from 109.76 yen to 109.86 yen. The euro went from $ 1.1691 to $ 1.1688.
Contributed by AP Business Editors Alex Veiga, Stan Choe and Damian J. Troise.
Asian Stocks, Wall Street Holds Profits After Federal Reserve Statement | Associated press |
Source link Asian Stocks, Wall Street Holds Profits After Federal Reserve Board Statement | Associated press |