Breaking News

Dollar rules supreme after the rate hike, commodities hammered.

News Date: 17/12/2015 00:39:12
 

Dollar made deep gains after the U.S. Federal Reserve raised its official interest rate range from 0.0-0.25% to 0.25-0.50%, the first rate hike in almost a decade. Dollar was propelled higher, with its index jumping to a two-week high at 99.0 with a 0.46% gain. Dollar advanced for the third day against the euro, hitting a nine-day high at 1.0845, with a robust 0.57% profit. Dollar rose for the fourth session against sterling to a two-week high at 1.4949, gaining 0.30%. It jumped to an eight-day high against the yen at 122.46, grabbing 0.20%.

 

The Fed's chair Janet Yellen emphasized in particular that future rate hikes would be gradual and slow, which cheered world stocks. U.S. Dow Jones index ended 224 points higher, brushing with a ten-day high at 17,748. NASDAQ added 75 points, or 1.52% to 5,061, while S&P 500 advanced 29 points, or 1.45% to 2,073.

 

Asian shares were similarly excited, with Japan's Nikkei surging 1.80% to 19,388. China's CSI300 for the biggest listed companies in Shanghai and Shenzhen rose 1.83%. Australia's S&P\ASX 200 index gained 1.46%, while Hong Kong's Hang Seng index got 0.71%. Korea's KOSPI was more muted, edging up only 0.06%.

 

Oil prices collapsed in the aftermath of the hike, tumbling 5.0% yesterday, and extending their losses today. U.S. crude futures gave up 12 cents, or 0.32% to $35.41 a barrel. Brent futures lost 33 cents, or 0.87% to $37.14 per barrel.

 

Other commodities weren't luckier, with gold futures dipping 10 dollars, or 0.94% to $1,066.70 an ounce. Silver futures slid 13 cents, or 0.95% to $14.03 an ounce. Copper lost 0.30% to trade at $2.065 per pound.

 

Being released today, Britain's retail sales for November, forecast to have risen 0.5% m\m, after a contraction of 0.6% in October. Core retail sales are expected to expand by 0.6%. Britain's inflation has been close to zero for half a year, but a strong period for sales is expected due to Christmas, which would be good for sterling.

 

From the U.S., unemployment claims for last week are forecast at 275K, lower than the previous week's 282K. The lower the claims are the better for dollar since it indicates a strong jobs market.  

 

Latest news

Crude oil futures rose during the Asian session today, Thursday, this rise came after a decline : after the US central bank raised interest rates to control inflation, which directly affected the dem
09-2022 22 02:20:30

Yesterday, Wall Street closed lower , following the US central bank’s meeting, which is expected to raise interest rates significantly. According to the data, the Standard & Poor's 500
09-2022 21 01:33:42

Today gold futures and crude oil futures rose during the Asian session. As the gold futures contract was traded in December at $1,685.30 an ounce, its price increased by 0.42%, after it had previous
09-2022 20 02:56:35

The dollar fell by about 1% from its highest level in 20 years, this comes when investors assessed some of the risks of large increases in interest rates expected by major central banks during this w
09-2022 19 01:28:27

According to the New York Mercantile Exchange, futures contracts for gold fell, as they were traded in December at $1642.4 an ounce, it decreased by 0.29%. Gold has already traded lower session at $
09-2022 16 02:02:56

More News

Logs

Advertisements