Sci-tech

World stocks notch up new high but it's all about the Fed

World stocks notch up new high but it's all about the Fed”

USA stocks had little reaction to news from the Fed, which still expects a third rate rise this year and three more in 2018.

Federal Reserve Chairwoman Janet Yellen on Wednesday warned millions of Americans to scrupulously monitor their credit reports following a "very serious data breach" at Equifax.

While an interest rate increase is not expected, investors will closely watch Fed Chair Janet Yellen's views on inflation, which remains stuck below the Fed's 2-percent target rate.

A dollar index fell 0.14 percent. (NASDAQ:AAPL) fell 1.7% after Rosenblatt analysts highlighted weak iPhone 8 preorders relative to the iPhone 6 and iPhone 7 as iPhone X orders don't start until October 27.

The US Federal Reserve has confirmed it will start to unwind its massive asset purchase, or quantitative easing (QE), programme from next month.

"US growth could well be affected in the short-term by the recent devastating hurricanes, but the labour market continues to prosper and shows no signs of slowing down".

The Fed has felt confident to raise rates because it appears to have met one of its key mandates: Maximizing employment.

Tuesday marks the start of the US central bank's two-day meeting. A press conference is due later.

The Dow Jones is up over ten points at 22,380, while the Nasdaq is down nearly 12 at 6,449.

Japan's Nikkei 225 was flat at 20,298.80 and South Korea's Kospi edged down 0.1 percent to 2,413.63. The drug is used for the treatment of patients with hereditary ATTR amyloidosis with polyneuropathy. (NYSE:GIS) lost 5.8% after earnings per share missed estimates on a deeper-than-expected drop in organic sales.

U.S. benchmarks appeared to be sitting on the fence at the open ahead of the Fed conference later. The Standard & Poor's 500 index inched up 0.1 percent to 2,508.24 and the Dow Jones industrial average rose 0.2 percent to 22,412.59.

The TSX in Toronto added over 38 points to stand at 15,331.

"The basic message here is US economic performance has been good", Federal Reserve Board Chair Janet L. Yellen said on Wednesday. Brent crude, used to price worldwide oils, gained 24 cents to $55.38 per barrel in London.

But Central bankers have a hard juggling act to maintain against inflatioin and economic growth.

The euro's appreciation reflects a stronger euro zone economy, supporting calls for the European Central Bank to move away from its unprecedented stimulus policy, ECB rate-setter Klaas Knot said on Wednesday. The unemployment rate is just 4.4 percent, near a 16-year low.

The only other potential choice for Fed chair Trump has mentioned is Gary Cohn, a former Goldman Sachs executive who leads the president's National Economic Council.

"The economic data will be soft on a temporary basis, but the fundamentals are solid", said Mark Zandi, chief economist at Moody's Analytics, who foresees a third rate hike in December and three more next year.

With Hurricanes Harvey and Irma clouding some economic data - temporarily raising gas prices, likely restraining hiring and potentially depressing growth in the July-September quarter - some analysts assumed the Fed wouldn't have enough information by December to assess whether the economy had rebounded from the storms.



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