Sunday, October 14, 2007
Tuesday, October 9, 2007
Stocks Rise on More Rate Cut Hopes
Wall Street advanced sharply Tuesday as investors interpreted minutes from the Federal Reserve's last meeting as indicating the central bank is ready to keep cutting interest rates to boost the economy.
ADVERTISEMENT
The minutes from the Federal Open Market Committee's Sept. 18 meeting, when Fed governors voted unanimously to cut rates a half percentage point, also showed that officials were concerned that the weakness in the dollar could lead to higher inflation. But the Fed -- signaling it is more willing to intervene -- also said that the economic outlook was uncertain because of the summer's credit crisis, and that there were still risks to growth that justified lower rates.
The major indexes were little changed just before the minutes came out, and then rose sharply. Investors were hoping that the Fed would lean toward future rate cuts; central bankers will meet again Oct. 30-31.
"This adds fuel to the fire that the Fed is going to try and reinvigorate the economy with further cuts, and that's what they are committed to," said Richard E. Cripps, chief market strategist for Stifel Nicolaus. "The likelihood of having a second cut either this month or at the December meeting seems greater than before the minutes."
Further, Federal Reserve Bank of St. Louis President William Poole said during a speech Tuesday that he believes the financial markets are "still fragile" from weakening credit conditions, but that it appears to be stabilizing. He pointed out that the fallout in the subprime mortgage sector, where mortgages are issued to homebuyers with poor credit, was one of the catalysts to financial market turmoil
NEW YORK (AP) --
ADVERTISEMENT
The minutes from the Federal Open Market Committee's Sept. 18 meeting, when Fed governors voted unanimously to cut rates a half percentage point, also showed that officials were concerned that the weakness in the dollar could lead to higher inflation. But the Fed -- signaling it is more willing to intervene -- also said that the economic outlook was uncertain because of the summer's credit crisis, and that there were still risks to growth that justified lower rates.
The major indexes were little changed just before the minutes came out, and then rose sharply. Investors were hoping that the Fed would lean toward future rate cuts; central bankers will meet again Oct. 30-31.
"This adds fuel to the fire that the Fed is going to try and reinvigorate the economy with further cuts, and that's what they are committed to," said Richard E. Cripps, chief market strategist for Stifel Nicolaus. "The likelihood of having a second cut either this month or at the December meeting seems greater than before the minutes."
Further, Federal Reserve Bank of St. Louis President William Poole said during a speech Tuesday that he believes the financial markets are "still fragile" from weakening credit conditions, but that it appears to be stabilizing. He pointed out that the fallout in the subprime mortgage sector, where mortgages are issued to homebuyers with poor credit, was one of the catalysts to financial market turmoil
NEW YORK (AP) --
Asian stocks rise, dollar near 2-month high
Asian shares extended gains on Tuesday while the dollar held near a two-month peak against the yen, as investor fears over a possible recession in the United States subsided.
Japan's Nikkei average rose 1 percent, led by high-tech exporters, such as Advantest Corp, as Tokyo caught up with Friday's record-setting rally on Wall Street. Japanese markets were closed on Monday for a national holiday.
By 8:53 p.m. Monday EDT, MSCI's measure of Asia Pacific stocks excluding Japan (.MIAPJ0000PUS: Quote, Profile, Research) was flat. On Monday, it added 0.3 percent to a record closing high.
Australia's S&P ASX 200 rose 0.2 percent, South Korea shares (.KS11: Quote, Profile, Research) gained 0.3 percent and Taiwan stocks (.TW11: Quote, Profile, Research) opened up 0.3 percent.
Worries about a U.S. economic downturn and its global fallout receded on Monday, lifting the dollar and Asian stocks, though European shares took a breather after a five-session rally.
The Dow Jones industrial average fell 0.16 percent, while the Nasdaq Composite Index inched up 0.25 percent.SINGAPORE (Reuters) -
Japan's Nikkei average rose 1 percent, led by high-tech exporters, such as Advantest Corp, as Tokyo caught up with Friday's record-setting rally on Wall Street. Japanese markets were closed on Monday for a national holiday.
By 8:53 p.m. Monday EDT, MSCI's measure of Asia Pacific stocks excluding Japan (.MIAPJ0000PUS: Quote, Profile, Research) was flat. On Monday, it added 0.3 percent to a record closing high.
Australia's S&P ASX 200 rose 0.2 percent, South Korea shares (.KS11: Quote, Profile, Research) gained 0.3 percent and Taiwan stocks (.TW11: Quote, Profile, Research) opened up 0.3 percent.
Worries about a U.S. economic downturn and its global fallout receded on Monday, lifting the dollar and Asian stocks, though European shares took a breather after a five-session rally.
The Dow Jones industrial average fell 0.16 percent, while the Nasdaq Composite Index inched up 0.25 percent.SINGAPORE (Reuters) -
Nikkei up 0.9 pct as exporters rise
The Nikkei average rose 0.9 percent on Tuesday, buoyed by exporters such as Advantest Corp (6857.T: Quote, Profile, Research) after Friday's record-setting rally on Wall Street and on a softer yen, while Toray Industries Inc (3402.T: Quote, Profile, Research) jumped on news it plans to begin mass production of carbon fiber auto parts.
Japanese markets were closed on Monday for a national holiday.
Shares of Softbank Corp (9984.T: Quote, Profile, Research) climbed after Japan's smallest mobile phone carrier won most users last month, while Olympus Corp (7733.T: Quote, Profile, Research) gained on a report it had probably beaten its own earnings forecast.
"Exporters are leading gains as the better-than-expected U.S. jobs data eased concerns about fallout from the subprime problems. The softening yen is also supporting the advances," said Hiroaki Kuramochi, managing director at Bear Stearns.
"But the market is not likely to keep rising as it lacks domestic trading factors. It needs to watch external factors such as U.S. stock moves and the currency."
Yutaka Miura, deputy manager of the equity information department at Shinko Securities, said investors are likely to take a wait-and-see attitude as concerns about the U.S. economic slowdown had not been completely wiped out.TOKYO (Reuters) -
Japanese markets were closed on Monday for a national holiday.
Shares of Softbank Corp (9984.T: Quote, Profile, Research) climbed after Japan's smallest mobile phone carrier won most users last month, while Olympus Corp (7733.T: Quote, Profile, Research) gained on a report it had probably beaten its own earnings forecast.
"Exporters are leading gains as the better-than-expected U.S. jobs data eased concerns about fallout from the subprime problems. The softening yen is also supporting the advances," said Hiroaki Kuramochi, managing director at Bear Stearns.
"But the market is not likely to keep rising as it lacks domestic trading factors. It needs to watch external factors such as U.S. stock moves and the currency."
Yutaka Miura, deputy manager of the equity information department at Shinko Securities, said investors are likely to take a wait-and-see attitude as concerns about the U.S. economic slowdown had not been completely wiped out.TOKYO (Reuters) -
Subscribe to:
Posts (Atom)