US Market closed slightly higher, FOMC statement was the main catalyst. As expected, the Fed reduced the monthly pace of its asset purchases by $10 billion to $15 billion, setting expectations for the program to be wound down at the next meeting. Furthermore, the Fed maintained the "considerable time" language in its forward guidance, suggesting the first rate hike remains somewhat distant. On that note, the economic projections that were also released indicated the Fed sees the fed funds rate at 1.375% at the end of 2015. US Steel boosted guidance, Energy closed lower by 0,5% pressured by crude (-0,6% @ $94.33), Financials (+0.4%), industrials (+0.4%), and technology (+0.2%) displayed relative strength, while consumer discretionary (unch) ended a bit behind the broader market. volume were small higer @ 650m shares...VIX @ 12,65 -0,63%...USafter Hours UNFI(+3,1%), STLD(+2,6%), MLHR (+1,8%) higher on earnings/guidance, A higher on Keysight spin off; FLXN (-22,6%) on FDA clincal hold of Phase 2b trial, PIR (-10,6%) lower on earnings/guidance; EPR(-2,1%), ONTY (-2,5%), FANG (-2,8%), NEWM (-4,7%) lower on offerings..USD/JPY hit new 6 year highs above ¥108.70, EUR/USD fell to 14-month lows below $1.2840, and AUD/USD hit 6-month lows below $0.8940 in the wake of mixed FOMC statement / updated projections / Yellen press conference. The Fed retained "considerable time" and "underutilization of labor" catch-phrases, but the hawkishly-predisposed Fisher joined Plosser's dissent. Staff projections lowered 2014 and 2015 GDP forecasts, but new median rate forecasts for 2017 and the long term (blue dots) stretched out to mid-4pct. Moreover, expectations for first rate hike in 2015 were reported by 14 members (12 prior), while those of first hike in 2016 are now 2 vs 3 prior. Finally, Fed chair Yellen in her press conference said its not fair to call Fed's forward guidance as calendar-based, and that the Fed will move sooner if it sees the need to do so, presumably conveying more data dependence. Tracking firmer USD, spot gold hit an 8-month lows below $1,225/oz...Nikkei +1,24%...Hang Seng-0,88% ...Shanghai+0,38%
Eur$ 1,2864 S&P +0,05% EuroStoxx +0,28% FTSE +0,16% DAX +0,29% SMI +0,30%
Macro
- China Aug. New Home Prices Fall M/m in 68 Cities
- Scottish Vote: 48% Yes, 52% No in YouGov Poll
Keep an eye on :
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- AF FP : Air France Union Gives Notice for Strike Next Week: La Tribune
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- CABK SM : CaixaBank Said to Seek EU3b in ECB’s TLTRO Auction Tomorrow
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- SUN SW : Sulzer, Dresser-Rand M&A Talks May Foil Possible Siemens Bid: BI
- TESB BB : Tessenderlo Plans to Raise EU150m-EU200m in Rights Offering
- UBSN VX : UBS in $1.4 Billion Test Case of French Tax-Evasion Crackdown
- VAHN SW : Vaudoise 1H Consolidated Net Rises 27% to CHF82.5m