February 22, 2018

Kiwi dips as US Fed plans 'to get on with it'

28 September 2017, 12:34 | Cassandra Thompson

Kiwi dips as US Fed plans 'to get on with it'

Tech recovery lifts Wall Street

The broad-based S&P 500 rose 0.2 percent to 2,502.65, while the tech-rich Nasdaq Composite Index climbed 0.4 percent to 6,398.81.

Both New York Federal Reserve Bank President William Dudley and Chicago Fed President Charles Evans said they believe the USA economy's fundamentals are sound, and both said they support gradual rate hikes ahead.

Yellen's remarks attempt to resolve a debate that has split members of the central bank among those anxious that inflation may be permanently anchored below the Fed's 2 percent target because of structural changes in the global economy, and those who feel it is only a matter of time before tight labor markets lead wages and prices to rise.

The dollar index was up 0.04% to 93.07 as of 04:22 BST. The yen pared some of the previous day's gains, which followed North Korea's declaration it could shoot down USA warplanes. The much-anticipated tax reform package is expected to be presented during a speech in Indianapolis, at 3 p.m. ET. With President Trump due to reveal tax reform plans, the rally may extend to the next resistance at the 94 level.

Banks put in a solid performance amid expectations of higher interest rates, with Standard Chartered, Lloyds and RBS among the top gainers, although StanChart was also boosted by an upgrade to "hold" from "sell" at Investec.

Advertisment Greater China markets bucked declines in most Asian markets to post slight gains on Wednesday as investors digested Federal Reserve Chair Janet Yellen's overnight speech and as North Korea tensions took a backseat. President Donald Trump has not said whether he plans to re-appoint Yellen or overhaul the central bank's seven-member board of governors.

Gold is highly sensitive to rising USA interest rates, as they increase the opportunity cost of holding non-yielding bullion versus the dollar. But even with uncertainty about the possible reasons for the low rate of inflation - from misjudging the strength of the labor market to the impact of foreign competition on the global supply chain - Yellen said the Fed "should be wary of moving too gradually".

Houston weighs in on National Football League kneeling protests
Last year, Reuters reports the week 3 matchup between the Chicago Bears and the Dallas Cowboys produced a 12.9 rating nationally. The controversy could be bad news for television networks, if vast numbers of viewers decide to tune out all at once.

The Euro-to-Dollar rate pared a 0.68% loss overhanging from the London session to trade just 0.52% down at 1.1794.

Weekly data on US petroleum supplies will be released by Energy Information Administration late Tuesday and arly Wednesday.

U.S. WTI futures were up 0.50 percent to $52.14 per barrel and Brent crude futures were up 0.34 percent to $58.64.

MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.1 percent. The euro fell to $1.1788 from $1.1791.

The greenback broke out to over a 2-month high of Y113.229 against the Japanese Yen Wednesday morning, but has since pulled back to around Y112.700.

In oil markets, Brent crude traded at around $58.23 a barrel on Wednesday morning, down 0.36 percent, while US crude was flat at $51.89 a barrel.

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