World stock markets registered a steep rise as oil prices gained and us dollar fell to eight-week low agaisnt euro, Swiss franc after announcement of Fed minutes, today.
World stock markets registered a steep rise as oil prices gained and us dollar fell to eight-week low agaisnt euro, Swiss franc after announcement of Fed minutes, today. The Federal Reserve’s latest policy meeting showed that the Fed officials were divided over the rate hike decision as some FOMC members supported rate hike. Dow Jones industrial average was up 20.47 points to 18,594.41, the S&P was up 500 points to 2,185.68 and the Nasdaq Composite gained 11.93 points to reach 5,240.59, reported Reuters. Brent crude prices rose over $50 per barrel to $50.42, a six-week high figure (since July 4), as energy stocks gained. Falling dollar also helped oil prices to gain to reach a six-week high.
“We remain skeptical that renewed talks of a production freeze by OPEC and other large producers will lead to a deal. Prices are only marginally above where they were when the group met in Doha in April and couldn’t agree to a deal,” ANZ analysts said. Federal Open Market Committee July meet’s minutes revealed that members were upbeat about US economic outlook. “The market’s take on the FOMC minutes is to read them in a somewhat more dovish fashion on the view that the Fed seems too divided to raise rates anytime soon,” said Alan Ruskin, global head of FX strategy at Deutsche Bank in New York.
(With Reuters input)