US Fed to decide fate of dollar and ruble

The Federal Reserve said Wednesday that the USA economy is strong enough for the central bank to begin reducing its $4.5 trillion balance sheet in October, gradually unwinding a massive stimulus program started after the economy entered a severe recession almost a decade ago.

The central bank confirmed, as expected, that it start trimming the $4.5 trillion balance sheet it built up after the recession in October.

The Federal Open Market Committee said it will keep the federal funds rate in a range of 1%to 1.25%.

The Federal Reserve took a small step to begin unwinding its crisis-driven asset purchases on Wednesday, but since the move was widely expected, the meeting's real drama hinged on the outlook for future rate hikes.

Fed Chair Janet Yellen has said the process will be gradual.

Interest rate futures traders are now pricing in a 68-percent chance of a December rate hike, up from around 60 percent before the statement, according to the CME Group's FedWatch Tool.

US crude rose 1.5 percent to $50.65 per barrel and Brent was last at $55.86, up 1.75 percent on the day.

That has undoubtedly helped support the stock market and economy during a very tricky post-credit crunch period.

ASIA'S DAY: Japan's Nikkei 225 added 0.1 percent to 20,310.46 and South Korea's Kospi edged down 0.2 percent to 2,412.20.

Sloane Stephens wins US Open for first Grand Slam title
King won back to back titles in 1971 and 1972 and then another (her last) in 1974 before passing the torch to Chris Evert. It was the first all-American US Open women's semi-finals since 1981 and the first at any Slam since Wimbledon in 1985.

FINSUM: We do not have any particularly sharp insight into what the Fed will do (and we don't think anyone really does), but we do believe that a shrinking of the balance won't cause the bond market losses that many fear.

The greenback was higher versus a majority of its G-10 peers, climbing as much as 0.7 percent after earlier posting declines of about 0.4 percent in the run up to the Fed's announcement.

The central bank last raised its benchmark rate in June, lifting it by a quarter of a percentage point, the fourth increase since it started gradually pushing up rates in December of 2015. On some days, demand for certain issues exceeds the amount of those bonds the Fed holds.

At 10.02am‚ the rand was at R13.2830 to the dollar from R13.3186‚ at R15.9370 to the euro from R15.9765 and at R17.9483 to the pound from R17.9990.

Brent crude futures rose $1.15, or 2.1 percent, to settle at $56.29 a barrel, while USA crude futures gained 93 cents, or 1.9 percent, to settle at $50.41.

Pfizer rose more than 2%, lifting the S&P and the Dow higher, after Morgan Stanley upgraded stock to "overweight" from "equal weight". The price of West Texas Intermediate is trading at $50.18 near a four month high. The Nasdaq composite fell 19 points, or 0.3 percent, to 6,442.

Bed Bath & Beyond BBBY.O sank more than 13 percent after the home furnishing retailer reported earnings and sales below estimates, prompting a slew of price target cuts.

USA stocks have been breaching record levels, with the Dow clocking a closing record for the fifth day in a row on Monday and the S&P closing at a record for the second consecutive session.

The Energy Information Administration (EIA) report of weekly USA crude inventories showed a higher than expected rise at 4.6 million barrels.


Popular
  • Aussies may go Head first in one-day opener

    Aussies may go Head first in one-day opener

    In recent times, there has been talk of the Indian think-tank preparing for the ICC World Cup in 2019. Since January 2013, the average first-innings score in games between India and Australia is 321.
    Wild elephants kill 2 Rohingya refugees in Bangladesh

    Wild elephants kill 2 Rohingya refugees in Bangladesh

    Alam said Bangladesh had given proposals to Myanmar for talks on the Rohingya crisis , but did not receive any "favourable response".
    Peru expels North Korea ambassador over nuclear test blast

    Peru expels North Korea ambassador over nuclear test blast

    Rinse and repeat until Pyongyang has survivable solid-fuel ICBMs with miniaturized thermonuclear warheads. FireEye identified the North Korean group behind the bitcoin attacks as TEMP.Hermit.
  • Chargers Come Up Short 19-17 Against Dolphins

    Chargers Come Up Short 19-17 Against Dolphins

    Unfortunately for Bolts fans, Sunday's loss was the second-consecutive week the team has fallen on a failed field goal attempt. LA finished out their San Diego residency past year in a 5-11 campaign that left them in last place in the AFC West.

    Samsung plans to release foldable Galaxy Note next year

    It has allowed the likes of Samsung incorporate display of 6.3 inches in the Galaxy Note 8 without adding weight or girth to it. Samsung had launched the Note 8 on Aug 23 and is slated to reach showrooms in the USA and United Kingdom on September 15.

    NFL Predictions: Seattle Seahawks vs. Green Bay Packers 9/10/17

    But it can last for only so long, and their first performance of the year widened any existing gulf between offense and defense. This would be the ultimate troll job after his career with the Green Bay Packers came to an abrupt end following last season .
  • Detroit Lions vs. New York Giants: Matt Prater gets lucky bounce

    OBJ is a transcendent talent, who's mere presence on a football field forces opposing defenses to shift their attention his way. If the Lions' defense looks anything like it did last week against the Cardinals, expect them to cover that +3 spread easily.
    5 reasons the Cleveland Indians are World Series favorites

    5 reasons the Cleveland Indians are World Series favorites

    The team has also played incredibly well since it lost its last game, outscoring opponents by a grand sum of 139-35. Bruce then smacked a 2-0 pitch into the right-field corner to score Ramirez with the winning run.
    UNSC unanimously imposes new sanctions on North Korea over nuclear tests

    UNSC unanimously imposes new sanctions on North Korea over nuclear tests

    Kim's antics have also started to affect China's strategic interests. "We will defend our allies and our territory". North Korea "will be absolutely sure that the United States will pay the price", said Pyongyang.
  • With Raiders rolling, Marshawn Lynch entertains crowd by dancing on the sideline

    With Raiders rolling, Marshawn Lynch entertains crowd by dancing on the sideline

    We made some strides. "We've got to look in the mirror and stop that problem ourselves". "We can't point the finger". Three plays later, Raiders running back Marshawn Lynch scored on a 2-yard run. "We got some playmakers", Lynch said.
    Satellite Images Show Hurricane Irma's Caribbean Destruction

    Satellite Images Show Hurricane Irma's Caribbean Destruction

    In a blog post published on Friday (Sept. 8), he said resorts had been "decimated". "It's absolutely ridiculous and inhumane". He told the Associated Press that companies with better disaster insurance will be able to rebuild more quickly.
    Gov. McMaster to announce final decision on state evacuations

    Gov. McMaster to announce final decision on state evacuations

    They have requested a FEMA incident management team to expedite any federal assets that may be needed to respond to the storm. Residents cleared out store shelves, grabbing the essentials as they prepared for the worst in cities like Charleston.

CONNECT