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U.S. futures rise on Fed statement, miners lead; Dow Jones up 0.35%

Published 09/19/2013, 06:46 AM
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Investing.com - U.S. stock futures pointed to a higher open on Thursday, led by sharp gains in mining stocks as the Federal Reserve's decision to maintain its stimulus program on Wednesday boosted market sentiment.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.35% rise, S&P 500 futures signaled a 0.46% increase, while the Nasdaq 100 futures indicated a 0.42% climb.

The Fed refrained from reducing the USD85 billion pace of its monthly asset purchases and said the central bank must determine its policies based on "what’s needed for the economy," even if it surprises markets.

Speaking after the conclusion of the Fed's two-day policy-setting meeting, Fed Chairman Ben Bernanke Bernanke said he wanted to "wait a bit longer and to try to get confirming evidence" that the economy is showing signs of lasting improvement.

Bernanke refused to commit to reducing bond purchases this year, saying the stimulus program was "not on a preset course."

Separately, the Fed cut its projection for 2013 economic growth to a 2.0% to 2.3% range from a June estimate of 2.3% to 2.6%.

Commodity-linked stocks were expected to be active, as the Fed's policy statement sent commodity prices broadly higher. Shares in Royal Gold were up 0.04% in extended trading, after soaring over 8% on Wednesday, while Freeport-McMoRan copper and gold mining company rose 0.23% pre-market.

The financial sector was also likely to be in focus, as Wells Fargo said it is eliminating about 1,800 more jobs in its home-loan production business seeing as rising mortgage rates are weighing on borrowers’ demand for refinancing.

Separately, JPMorgan Chase, up 0.26% after hours, was reportedly expected to pay about USD900 million to settle U.S. and U.K. claims that lax internal controls led the U.S. lender to provide inaccurate information about last year’s record trading loss to the board.

Also in company news, the Wall Street Journal reported that Blackberry is preparing to lay off up to 40% of its staff by the end of the year.

In the same sector, Apple shares climbed 0.80% in early trading after first reviews of the new iPhones released on Wednesday showed mostly positive reactions for the 5C and 5S.

Other stocks likely to remain in focus included ConAgra and Rite Aid, scheduled to report quarterly earnings later in the day.

Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 rallied 1.32%, France’s CAC 40 jumped 1.09%, Germany's DAX gained 1.13%, while Britain's FTSE 100 surged 1.43%.

During the Asian trading session, Hong Kong's Hang Seng Index jumped 1.67%, while Japan’s Nikkei 225 Index rallied 1.80%.

Later in the day, the U.S. was to release the weekly report on initial jobless claims, as well as the Philly Fed manufacturing index and data on existing home sales.


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