The U.S FED tried to cast a positive light on a day that saw further downgrades in the Euro-zone. The FOMC was stead fast in their language regarding leaving rates low for an extended period of time, however, the FED was pleased with the underlying growth. U.S equity markets rose on the outlook of growth combined with low rates. The DJIA gained 53.38 to close back above 11,000. However, European markets did not fair as well with the Stoxx Europe 50 sliding .89% and the FTSE 100 losing .30%. In overnight trading the Nikkei 225 continues to fluctuate by triple digit losses and gains, this time losing 287.87 points to fall back below 11,000.
Nikkei 225 Volatility
Commodities & Treasuries:
Treasuries sold off as fear relinquished its grip on the market. In addition, the U.S Treasury sold $42 billion 5yr notes causing demand on existing Treasuries to fall as investors bought into the new issue. In the commodities space Gold was essentially flat on the day to close the U.S session at 1,171.30. Oil advanced $1.38 to close at 83.22.
With commodities rising on the day the CAD, AUD, and NZD advanced, .85%, 1.12%, and 1.31% respectively. European currencies sold off as the EUR lead the charge down once again. The EUR closed down .20% after trading as low as 1.3112, though it did rebound going into the Asian session. The JPY retraced all of its gains from 2 day ago as it lost nearly 1% to the Greenback finishing the day back above 94.
Of course headline news is overshadowing daily economic releases none the less the market responded favorably to the FOMC announcement. In New Zealand, the RBNZ left rates unchanged yesterday at 2.5%. In the Euro-zone German Unemployment figures will print today. In the U.S, weekly Jobless Claims will be released. Analysts are looking for a decrease in these numbers to mark a second consecutive week of positive data.
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