Gold regains 29K-mark, soars ₹ 450 on global cues
- Author: Darren Santiago Mar 19, 2017,
Mar 19, 2017, 1:00
Investors had widely expected the rate increase.
Nasdaq 100 e-minis were up 9.5 points, or 0.18 per cent, on volume of 6,104 contracts.
Markets also reacted positively after Dutch center-right Prime Minister Mark Rutte fought off a challenge by anti-immigration, anti-European Union rival Geert Wilders to score an election win seen as a victory against populist nationalism.
"Whether folks agree or disagree with the need to hike, the key here is that the Fed has signaled to markets, and importantly U.S. and global businesses, that it is in control and the economy is moving as expected", said Greg McKenna, chief market strategist at AxiTrader, in a note. The yield on the 10-year Treasury note rose to 2.53 percent from 2.50 percent late Wednesday.
In the European morning, the single currency traded at $1.071, a 0.2% decline from the previous day's market close, but up roughly 0.8% compared with where it was before the Fed made its policy announcement Wednesday.
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Holdings of the world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares (GLD), fell 0.28% on Thursday, the first outflow this week. After the United Kingdom vote last summer to leave the European Union, investors were anxious about whether a wave of nationalism across the continent could eventually break the European union apart. With evidence building that wages and consumer spending are finally slowing, however, money market pricing has pointed to there being little chance of the bank raising rates to cool an economy at a time when political risks to growth are rising. The People's Bank of China hiked the rate for its six-month and one-year medium-term lending facility and open-market repurchase operations by 0.1%.
EARNINGS POP: Tech giant Oracle jumped 7.1% to $46.12, notching the biggest gain in the S&P 500, after reporting stronger revenue and earnings for its latest quarter than analysts expected. Separately, retail sales rose 0.1% in February (http://www.marketwatch.com/story/us-retail-sales-barely-budge-in-february-2017-03-15).
Meantime, spot gold was was up 0.3% at $1,230.28 U.S.an ounce early Friday, taking its gains this week to 2%.
COMMODITIES: Benchmark U.S. crude slipped 16 cents to $48.70 a barrel. That resulted in buying in U.S. government bonds, pushing yields, which move inversely to prices, lower, while a measure of the dollar's strength, the ICE U.S. Dollar Index DXY, +0.15% looked to end the week about 1.1% lower. It was the eighth drop in the last nine days.
Shares of Tesla rose 2.8 per cent to US$262.94 (RM1,166) after the electric carmaker said it would raise about US$1.15 billion as the company speeds up the launch of its Model 3 sedan. The euro rose to $1.0733 from $1.0713, and the British pound rose to $1.2352 from $1.2301.