World stock indexes edged higher yesterday following the release of minutes from the last Federal Reserve meeting, while the dollar extended declines.

The minutes from the September 16-17 meeting showed the Fed policymaking committee thought the economy was close to warranting an interest rate hike in September but decided it was better to wait for evidence that a global economic slowdown was not knocking the United States off course.

The Dow and S&P 500 added to gains, putting the S&P 500 above 2,000 for the first time in three weeks.

US Treasuries were flat after the report, while a dollar index was down 0.3 per cent. Fading chances of a near-term rate hike have taken a toll on the dollar.

“Stocks are reacting positively, and the dollar’s reacting negatively to the slightly more dovish comments about near-term prospects for inflation,” said Patrick Maldari, senior fixed income investment specialist at Aberdeen Asset Management in New York.

The Dow Jones industrial average rose 94.53 points, or 0.56 per cent, to 17,006.82, the S&P 500 gained 10.87 points, or 0.54 per cent, to 2,006.7 and the Nasdaq Composite added 2.83 points, or 0.06 per cent, to 4,793.99.

MSCI’s all-country world equity index was up 0.4 per cent, while the pan-European FTSEurofirst 300 ended up 0.3 per cent.

A warning by Deutsche Bank of a record pre-tax loss in the third quarter dragged down its US-listed shares by 1.7 per cent .

In Europe’s growth engine, Germany, exports plunged 5.2 per cent in August for their biggest monthly decline since the height of the global financial crisis.

Doubts about developed world growth also came from Japan, where data showed machinery orders fell in August by 5.7 per cent, bucking expectations of a rise and undermining hopes of an inflation pick-up.

Crude oil prices stayed higher following the Fed minutes.

US crude rose $1.62 to settle at $49.43.

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