Dow-0.39% S&P-0.26% Nasdaq+0.10% Russell+0.44% VIX 21.76
US Market closed lower after long awaited FOMC Meeting, policy statement from the Federal Reserve was virtually a carbon copy of the previous directive. The FOMC acknowledged positive labor market conditions in the U.S., but indicated that concerns related to an economic slowdown in China have outweighed the domestic positives. Ms. Yellen stressed that these developments have weighed on the inflation outlook, contributing to today's decision to maintain status quo. Furthermore, Ms. Yellen emphasized that the expected rate path is more important than the first rate hike, indicating that the Committee expects to see rate normalization by 2018. Hearing ‘2018' in that context was music to the market's ears, inviting a stampede of buyers in stocks while Treasuries spiked to highs with the 10-yr yield falling ten basis points to 2.20%. The post-FOMC move higher was followed by a dive to new lows, with the reversal paced by the financial sector (-1.4%), which settled in the red as bank stocks responded to rates remaining lower for longer. The sector accelerated its decline as Fed Chair Yellen responded to a question about the possibility that the U.S. falls into a Japan-like deflationary trap. To little surprise, Ms. Yellen said that such a scenario is not anticipated at this time. Technology also weighted on the market, ORCL -4%. industrials (-0.5%), energy (-0.1%), and materials (-0.5%) succumbed to the afternoon selling pressure. Volume were in line with acerage at 975mil shares. US After Hours PDEX +25.9%, AKS +12.8%, LQ -5.1%, ADBE -2.4% following earnings/guidance, VBLT +15.7% on Phase 2 results...China put out its housing prices that continued to recover. Across top 70 cities prices m/m were +0.6% (3rd straight increase) v +0.2% prior, while y/y the decline slowed to -2.3% v -3.7% prior (12th straight decline). HKMA chief Chan still expressed concern over local economy and property market, just as China Pres Xi reiterated the economy is resilient, with capacity to maintain medium to high growth rate in long term. In Japan, the BOJ released the minutes of its Aug meeting that saw members agree Japan economy will continue modest recovery and noted inflation expectations on the rise. Sentiment produced little market reaction, as it follows a more recent policy statement this week where the BOJ cut its assessment of exports and output. Also of note, high-profile former MoF official Sakakibara said continued Yen weakness is unlikely, and that there's greater chance of a move to ¥115-120 range then to ¥125 level.
Nikkei -1.53% Hang Seng +0.53% Shanghai +0.93%
Eur$ 1.1412 CNY 6.3622 JPY 119.70 GBP 1.5581 EURCHF 1.0972 RUB$65.6420 WTI $46.74 9(-0.34%)
S&P +0.03% EuroStoxx -0.35% Dax -0.40% SMI-0.70%
Macro :
- FOMC See Longer-Run Median Federal Funds Rate at 3.50%
- Yellen May Emulate Taper Template and Raise Rates in December
- It’s Party On in Credit Markets as Fed Stays at Zero for Longer
- China Home-Price Growth Widens to More Cities Amid Rate Cuts
- The Brazilian Dealmaker Who Wowed Buffett Is Reshaping the World
Keep an eye on :
- ABG/P SM : Abengoa Loans Said to Fail to Draw Buyers Even at 60% Discount
- ABG/P SM : Blackstone, Cerberus May Inject Cash Into Abengoa: Expansion
- ABI BB : Belgian Stock Regulator to Analyze AB InBev Option Trade: Tijd
- AC FP : Colony Capital in Talks to Buy French Auto Chain: Reuters
- ATL IM : Atlantia Said in Advanced Talks to Sell Stake in Rome Airport
- ATC NA : Altice Will Do More U.S. Cable Acquisitions, Alliances: Drahi
- ATC NA : FCC Considering CVC/Altice Merger in ‘Open, Fast’ Process
- BAYN GY : Bayer Mulls Legal Steps on Xarelto Copy Application in U.S.: FAZ
- BBVA SM : BBVA mandates N+1 to sell its Italian consumer financing unit BBVA Finanzia
- BMW GY : BMW Sees FX, Commodity Benefit of Three-Digit Millions: Boersen
- IMT LN : Could be a target for Japan Tobacco
- KNEBV FH : Kone CEO Sees Good Growth Potential in China in Few Years: DI
- LLOY LN : Lloyds May Be Investigated by U.K. Serious Fraud Office: FT
- SAB LN : Altria Said to Hire Credit Suisse, Perella for ABI-SAB
- SHP LN : Shire CEO Says Can’t Promise Lifitegrast Approval by Pdufa Date
- VNF1R LR : Vitol Buys 43.3% Stake in Ventspils Nafta for 1.77 Euros a Share
- VOLVB SS : Volvo Cars to Spend EU200m on CMA Platform in Ghent Plant: Tijd