Equities
Asian markets gained on Wednesday, ahead of the Fed’s press conference, in anticipation of further economic stimulus. The Nikkei advanced 1.1% to 8752, the Hang Seng gained .5% to 19519, and the Kospi rose .7% to 1904. Trailing behind, the ASX 200 inched up .2%, while the Shanghai Composite slipped .3%.
European stocks rose as well, in choppy trading. The FTSE gained .6% to 5622, the DAX climbed .5% to 6392, and the CAC40 edged up .3% to 3163. German Chancellor, Angela Merkel said a move to use the European Stability Mechanism to buy bonds from indebted nations was not up for debate. Yesterday, France’s President backed the idea as a means to lower interest rates for struggling countries.
Bernanke once again disappointed investors, failing to announce a new round of stimulus, although the Fed did extend “Operation Twist” by another $267 billion, a move which sells short-term bonds while buying long-term bonds. Stocks fell after his speech, but stocks closed only moderately lower. The Dow slipped 13 points to 12824, the S&P 500 eased .2% to 1356, while the Nasdaq closed up fractionally.
Tesla Motors rallied 5.3% after garnering an upgrade from Goldman Sachs. Adobe slumped 2.7% after cutting its outlook for the year.
Currencies
Most currencies closed within a stone throw of their opening price. The pound, Australian dollar, and Canadian dollar all declined less than .1%, while the euro and Swiss franc inched up .1%. A notable exception was the Japanese yen which fell .7% to 79.52.
Economic Outlook
The Fed cuts its projections for 2012 GDP growth by .5% to a range of 1.9%-2.4%. The slower growth means unemployment is unlikely to improve dramatically in 2012.
Asian markets gained on Wednesday, ahead of the Fed’s press conference, in anticipation of further economic stimulus. The Nikkei advanced 1.1% to 8752, the Hang Seng gained .5% to 19519, and the Kospi rose .7% to 1904. Trailing behind, the ASX 200 inched up .2%, while the Shanghai Composite slipped .3%.
European stocks rose as well, in choppy trading. The FTSE gained .6% to 5622, the DAX climbed .5% to 6392, and the CAC40 edged up .3% to 3163. German Chancellor, Angela Merkel said a move to use the European Stability Mechanism to buy bonds from indebted nations was not up for debate. Yesterday, France’s President backed the idea as a means to lower interest rates for struggling countries.
Bernanke once again disappointed investors, failing to announce a new round of stimulus, although the Fed did extend “Operation Twist” by another $267 billion, a move which sells short-term bonds while buying long-term bonds. Stocks fell after his speech, but stocks closed only moderately lower. The Dow slipped 13 points to 12824, the S&P 500 eased .2% to 1356, while the Nasdaq closed up fractionally.
Tesla Motors rallied 5.3% after garnering an upgrade from Goldman Sachs. Adobe slumped 2.7% after cutting its outlook for the year.
Currencies
Most currencies closed within a stone throw of their opening price. The pound, Australian dollar, and Canadian dollar all declined less than .1%, while the euro and Swiss franc inched up .1%. A notable exception was the Japanese yen which fell .7% to 79.52.
Economic Outlook
The Fed cuts its projections for 2012 GDP growth by .5% to a range of 1.9%-2.4%. The slower growth means unemployment is unlikely to improve dramatically in 2012.