Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Wall St gains with oil before Fed decision

While you were sleeping: Wall St gains with oil before Fed decision

By Margreet Dietz

March 22 (BusinessDesk) - Wall Street gained as the US Federal Reserve is expected to announce an interest rate increase and provide updated economic and rate forecasts.

In 12:16pm trading in New York, the Dow Jones Industrial Average climbed 0.5 percent, while the Nasdaq Composite Index gained 0.3 percent. In 12.01pm trading, the Standard & Poor’s 500 Index rose 0.4 percent.

US Treasuries slipped, bolstering the yield on the 10-year note one basis point to 2.90 percent. The greenback also weakened.

The Federal Open Market Committee's post-meeting statement and forecasts as well as the press conference by Chair Jerome Powell will be scrutinised for clues whether the central bank’s pace of hikes this year might accelerate from the three it has so far flagged.

“Whether we have three or four rate hikes this year shouldn’t be that big of a difference to the economy, but it will have a big impact on market prices and market psychology,” Chris Zaccarelli, chief investment officer of the Independent Advisor Alliance, told Bloomberg.

The chances of four or more hikes are now about one in three, a new high, according to fed funds futures, Bloomberg reported.

The Dow moved higher as gains in shares of Chevron and those of DowDuPont, recently up 2.4 percent and 2.2 percent respectively, outweighed declines in shares of Procter & Gamble and those of Apple, down 1 percent and 0.6 percent respectively.

Shares of Chevron and those of Exxon Mobil, the latter up 1.4 percent recently, gained with the price of oil. West Texas Intermediate crude climbed to the highest in almost seven weeks after an Energy Information Administration report showed a surprise drop in US crude inventories, which declined 2.6 million barrels in the week to March 16.

“The report was supportive of prices, as a large jump up in the refinery utilisation rate and lowered crude oil imports combined to cause a net drawdown,” John Kilduff, partner at energy hedge fund Again Capital in New York, told Reuters.

In a sign of strong investor demand, Dropbox upgraded the price range for its initial public offering, saying it now expects the offering price per share will be between US$18 and US$20, up from a previous range of between US$16 and US$18. Final pricing is expected on Thursday.

Shares of Monsanto gained, up 0.9 percent as of 12.28pm in New York, as Germany’s Bayer earned the nod from European Union antitrust regulators for its takeover of the US company. Shares of Bayer closed 0.4 percent weaker in Frankfurt.

In Europe, the Stoxx 600 Index declined 0.3 percent from the previous close. The UK’s FTSE 100 index fell 0.3 percent, as did France’s CAC40 Index added 0.6 percent, while Germany’s DAX Index inched 0.02 percent lower.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Budget Policy Statement: 'Wellbeing Of NZers At The Heart Of Budget Priorities'

“We want a wellbeing focus to drive the decisions we make about Government policies and Budget initiatives. This means looking beyond traditional measures - such as GDP - to a wider set of indicators of success,” Grant Robertson said. More>>

ALSO:

Short Of 2017 Record: Insurers Pay $226m Over Extreme Weather

Insurers have spent more than $226 million this year helping customers recover from extreme weather, according to data from the Insurance Council of NZ (ICNZ). More>>

Environment Commissioner: Transparent Overseer Needed To Regulate Water Quality

Overseer was originally developed as a farm management tool to calculate nutrient loss but is increasingly being used by councils in regulation... “Confidence in Overseer can only be improved by opening up its workings to greater scrutiny.” More>>

ALSO:

Deal Now Reached: Air NZ Workers Vote To Strike

Last week union members voted overwhelmingly in favour of industrial action in response to the company’s low offer and requests for cuts to sick leave and overtime. More>>

ALSO: