You are here: Home » Reuters » News
Business Standard

Global equities slip as Fed holds rates steady; dollar up

Reuters  |  NEW YORK 

By Chuck Mikolajczak

NEW YORK (Reuters) - World equity markets declined on Thursday and were on track to snap a seven-session winning streak as U.S. stocks remained on the defensive while the U.S. dollar strengthened after the Federal Reserve kept interest rates unchanged.

held rates steady and said ongoing strong job gains and household spending had kept the on track. Its statement showed little change in the Fed's outlook for the since the Fed's previous meeting in September aside from noting that "business investment had moderated from its rapid pace earlier in the year."

"The Fed has recognised that there is one part of the that is slowing a little bit, but it is not deterring them from their gradual increase language. Not yet anyway," said Jamie Cox, at in Richmond,

"There is really nothing to point to what the market had hoped, that there would be a more dovish stance, so I think this is more of what we call a hawkish hold."

U.S. shares extended losses after the Fed statement, on the heels of Wednesday's post-election rally of more than 2 percent. Those gains came as investors celebrated political gridlock in the as Democrats took control of the after the midterm congressional vote, while Republicans maintained control of the

A spate of weak earnings also gave investors reason for pause, with one of the biggest drags on the benchmark index, down 7.7 percent as the loss of chip sales to caused the company to cut its fourth-quarter outlook.

The Dow Jones Industrial Average <.DJI> fell 22.16 points, or 0.08 percent, to 26,158.14, the <.SPX> lost 11.07 points, or 0.39 percent, to 2,802.82 and the <.IXIC> dropped 42.89 points, or 0.57 percent, to 7,527.86.

European shares closed higher, led by banking shares <.SX7P> following results from names such as and .

The pan-European 600 index <.STOXX> rose 0.19 percent and MSCI's gauge of stocks across the globe <.MIWD00000PUS> shed 0.30 percent.

The dollar had advanced heading into the Fed statement and slightly added to its gains after weakening in the prior session.

Traders currently see a 71.2 percent chance the Fed will raise rates by a quarter percentage point at its December meeting, according to CME's FedWatch, up from 68.8 percent on Nov 1.

The dollar index <.DXY> rose 0.59 percent, with the euro down 0.45 percent to $1.1373.

fell more than 1 percent, surrendering early gains as investors focused on swelling global crude supply, which is increasing faster than many had expected.

U.S. crude fell 1.61 percent to $60.68 per barrel and Brent was last at $70.64, down 1.98 percent.

Benchmark 10-year notes last fell 7/32 in price to yield 3.2373 percent, from 3.213 percent late on Wednesday.

(Additional reporting by Lewis Krauskopf; Editing by and James Dalgleish)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, November 09 2018. 01:19 IST
RECOMMENDED FOR YOU