Asia stocks edge higher after Fed meeting; dollar, U.S. yields sag | Reuters
TOKYO (Reuters) - Asian stocks edged higher on Thursday after the Federal Reserve delivered a much-anticipated interest rate hike but flagged caution about inflation, tempering expectations for future tightening, which weighed on the dollar and Treasury yields.
TOKYO (Reuters) - Asian stocks edged higher on Thursday after the Federal Reserve delivered a much-anticipated interest rate hike but flagged caution about inflation, tempering expectations for future tightening, which weighed on the dollar and Treasury yields. FILE PHOTO - Investors look at computer screens showing stock information at a brokerage house in Shanghai, China November 24, 2017. REUTERS/Aly SongAs widely expected, the Fed raised rates for the third time this year on Wednesday while sticking to its projection for three rate increases next year. But the policy tightening was accompanied by concerns about low inflation, toning down expectations for policy tightening in 2018. The Fed projected inflation to remain shy of its goal for another year, giving policymakers little reason to accelerate the expected pace of rate increases. “The key takeaway from the Fed meeting was the degree of concern shown towards low inflation, which likely led to two dissenting votes,” said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo. “The 10-year Treasury yield fell sharply on the Fed’s stance and lackluster U.S. CPI, which shows that the markets don’t necessary see the Fed hiking rates three times in 2018.” The 10-year Treasury yield US10YT=RR stood little changed at 2.3547 percent after dropping nearly 6 basis points overnight. Data earlier on Wednesday showed U.S. core consumer prices, which excludes volatile energy and food prices, moderated to 0.1 percent in November from a 0.2 percent increase in October. The dollar index against a basket of six major currencies was little changed at 93.409 .DXY after sliding about 0.7 percent on Wednesday to pull away from a one-month top of 94.219 set on Tuesday. The Fed’s less hawkish statements supported MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS, which rose 0.3 percent. Australian stocks added 0.2 percent and South Korea's KOSPI .KS11 climbed 0.55 percent. Japan's Nikkei .N225 inched up 0.1 percent. The dollar was a shade higher at 112.730 yen JPY= after losing 0.9 percent overnight. The euro was steady at $1.1832 EUR= following gains of 0.7 percent the previous day. Immediate focus for the euro was on the European Central Bank policy decision due later in the day. The ECB is expected to stand pat on monetary policy and the markets will be awaiting President Mario Draghi’s views on the euro zone economy for potential incentives. In commodities, U.S. crude futures CLc1 rose 0.35 percent to $56.81, lifted by the weaker dollar. Oil prices had slipped for a second straight day on Wednesday, as a slump in U.S. crude stockpiles was offset by a larger-than-forecast rise in gasoline inventories and as U.S. crude output continued to grow to record highs.
This story has not been edited by Firstpost staff and is generated by auto-feed.
ATHENS (Reuters) - Greek police used teargas and water cannon to disperse people who had gathered in central Athens on Saturday to protest against mandatory COVID-19 vaccinations. More than 4,000 people rallied outside the Greek parliament for a third time this month to oppose mandatory inoculations for some workers, such as healthcare and nursing staff.
ISTANBUL (Reuters) - Two Turkish soldiers were killed and two were wounded in an attack on their armoured vehicle in northern Syria, and Turkish forces immediately launched retaliatory fire, Turkey's defence ministry said on Saturday. "Our punitive fire against terrorist positions is continuing," the statement on Twitter on said. It did not specify where the attack occurred, but media reports said it was in the al-Bab area.
By Marcelo Rochabrun SAO PAULO (Reuters) - Protesters took to the streets in several Brazilian cities on Saturday to demand the impeachment of far-right President Jair Bolsonaro, whose popularity has fallen in recent weeks amid corruption scandals against the backdrop of the pandemic. This week, news broke that Brazil's defense ministry told congressional leadership that next year's elections would not take place without amending the country's electronic voting system to include a paper trail of each vote. Bolsonaro has suggested several times without evidence that the current system is prone to fraud, allegations that Brazil's government has denied