The dollar fell yesterday to its lowest since mid-November and world equity markets were little changed after the US Federal Reserve gave no hint on its next interest rate hike and aggressive language from the Trump administration kept investors focused on geopolitical risk.
On Wall Street, stock indexes were little changed as bank stocks fell after the Fed’s minimal guidance on future rate hikes, but consumer staples such as Philip Morris outperformed with a jump of three per cent on rosy results.
A gauge of major global bourses was up slightly.
The Fed left overnight interest rates unchanged after policymaking meetings this week even as it painted an upbeat picture of the economy.
The US central bank gave no firm signal of a hike in March as it waits to see the impact of US President Donald Trump’s protectionist trade policies, adding to uncertainty triggered by his recent comments and decisions.
he Dow Jones Industrial Average rose 14.14 points, or 0.07 per cent, to 19,905.08, the S&P 500 gained 2.63 points, or 0.12 per cent, to 2,282.18 and the Nasdaq Composite added 9.07 points, or 0.16 per cent, to 5,651.72.
The dollar index, which tracks the US unit against six world currencies, fell to 99.233, its lowest since November 14.
The uncertainty over President Trump’s policies and the Fed’s next move pushed US Treasury prices higher by raising the safe-asset appeal of US debt.
Benchmark 10-year Treasury notes rose 7/32 in price to yield 2.45 per cent.
Britain’s pound fell against the dollar and euro after the Bank of England, while raising its forecast for British growth this year, kept policy unchanged and said rates could go either way depending on the economic outlook.
BOE Governor Mark Carney said the revised growth forecast did not mean Britain’s vote to leave the European Union would be without consequences. He added an overshoot in UK inflation had been entirely due to sterling’s fall since the June vote.
European stocks were left flat-footed as disappointing company results, including a $7.5 billion fine for wrongdoing for Deutsche Bank sent its shares down more than 5 per cent.
Pan-European stock indexes edged lower while London’s FTSE 100 rose half a per cent.
Earlier, Asian shares ex-Japan hit their highest since mid-October as Korea’s markets climbed to their best level since July 2015.
Oil prices slipped, with Brent crude futures down 41 cents to $56.39 a barrel after nearing its peak of the year.
Copper fell more than one per cent to $5,882 a tonne. Safe-haven gold, however, hit its highest since mid-November as the dollar weakened. Gold last traded up one per cent at $1,220 an ounce.