The broad asset rally which the U.S. Federal Reserve inspired by pledging to keep rates low decelerated on Friday as investors awaited the outcome of Greek debt talks and U.S. gross domestic product data. Asian stocks paused.
World stocks fell from a 5-1/2 month high on Friday as gains spurred by the Federal Reserve's pledge of low interest rates gave way to concerns about Portugal, seen as the next domino in the Eurozone crisis, and uncertainty over Greek debt talks.
The rupee touched a two-and-a-half month high on Friday, aided by firm local shares, as demand for riskier assets was spurred by hopes Greece will soon reach an agreement on restructuring its debt.
Spot gold finished slightly lower on Thursday as investors locked in profits after bullion jumped past key resistance in early trade.
The U.S. economy is not robust by any means, but the recent manufacturing-driven recovery, if tepid, is finally beginning to erase memories of the disappointing slowdown in 2011. On the wings of the recent gains, growth in most sectors of the economy is likely to continue - and maybe even pick up momentum towards the end of the year.
U.S. stocks sagged on Thursday as traders cashed in on red-hot bank and technology shares, while the Federal Reserve's commitment to easy money to help the U.S. economy rebound weakened the dollar.
Valley National Bancorp's margins fell sequentially, prompting investor concerns about its profit growth in a low-rate environment, while its Northeastern peer First Niagara Financial managed to hold the line on its margins.
Below are highlights from Federal Reserve Chairman Ben Bernanke's news conference following the Fed's policy meeting on Wednesday.
New orders for U.S. manufactured goods rose in December and a gauge of future business investment rebounded, showing the U.S. economy ended the year with more momentum than previously thought.
New orders for manufactured goods rose in December and a gauge of future business investment rebounded, while new claims for jobless benefits rose only moderately last week, suggesting the labor market was still healing.
Claims for jobless benefits in the third week of January rose after falling to the lowest level in nearly four years. However, overall trends suggest fewer layoffs and more hiring.
European shares rose on Thursday, halting two-days of losses, after the U.S. Federal Reserve said interest rates would remain low for a considerably longer period than expected and it is ready to offer additional stimulus to boost economic growth.
Stock index futures rose on Thursday, adding to gains from the previous session when the Federal Reserve boosted equities by saying it was likely to keep interest rates near zero until at least late 2014.
Gold prices jumped Thursday after the Federal Reserve surprised markets by saying ultra-low interest rates will continue through 2014.
The euro held firm against the dollar, while European shares and gold moved higher on Thursday, after the U.S. Federal Reserve set out an unambiguously easier policy stance, but fears of a messy Greek debt default still haunt the markets.
Equities, commodities and the euro extended gains Thursday after the U.S. Federal Reserve said it would keep interest rates low for a much longer-than-expected period, providing ample liquidity to help spur growth.
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Below are highlights from Federal Reserve Chairman Ben Bernanke's news conference following the Fed's policy meeting on Wednesday.
Federal Reserve Chairman Ben Bernanke said Wednesday the central bank was ready to offer the economy additional stimulus after it announced it would likely keep interest rates near zero until at least late 2014.
Treasury Secretary Timothy Geithner sought to calm fears that the Obama administration's bank reforms were hostile to the U.S. financial industry, saying on Wednesday the reforms were "tough where they need to be tough."
Stocks rose on Wednesday after the Federal Reserve said it would keep interest rates near zero through at least 2014 and Apple's spectacular results boosted investor sentiment.
Big profits from Apple and a promise from the Federal Reserve to keep rock-bottom rates for at least two more years powered the U.S. stock market higher on Wednesday.
