Federal Reserve Leaves Interest Rates Unchanged

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From Trading Economics: The Federal Reserve left the target range for its federal funds rate unchanged at 0.25 percent to 0.5 percent for the seventh time during its November 2016 meeting, saying the labor market has continued to strengthen and growth of economic activity has picked up. Policymakers also added that the case for an increase in the federal funds rate has continued to strengthen. Interest Rate in the United States averaged 5.83 percent from 1971 until 2016, reaching an all time high of 20 percent in March of 1980 and a record low of 0.25 percent in December of 2008. Interest Rate in the United States is reported by the Federal Reserve.

Market Snap

Market Opening Wrap

In European Equity Markets stocks fell for the eighth straight day on Wednesday, driven downward by signs of a tightening race for the U.S. presidency next week and a fall in A.P. Moller-Maersk after disappointing results. The STOXX 600 index slid 1.1 percent to its lowest since July 11. Container shipping firm A.P. Moller-Maersk fell 7.2 percent after its earnings missed forecasts, posting a 44 percent fall in third-quarter profit. Italian lenders Popolare di Milano, Banco Popolare and UniCredit fell between 5 and 7.7 percent, hit by talk that Rome could delay a referendum on constitutional changes. Standard Chartered fell 4.4 percent after it reported weak results on Tuesday, with brokers Deutsche Bank and Natixis cutting their target prices for its shares.

In Currency Markets the U.S. dollar hit its lowest level in more than three weeks against the euro, yen, Swiss franc and sterling on Wednesday on continued nervousness about a potential victory for U.S. Republican presidential candidate Donald Trump next week. The euro rose about 0.6 percent against the dollar to $1.1115, its highest since Oct. 11. The dollar lost 1 percent against the yen to 103.10 yen, its lowest since Oct. 10. The dollar fell about 0.6 percent against the Swiss franc to 0.9695 franc, its lowest in roughly a month. The Mexican peso fell to a more than one-month low against the greenback of 19.4295 pesos per dollar on fears of a Trump victory.  The dollar index fell about 0.4 percent to 97.26, its lowest since Oct. 11.

In Commodities Markets  oil prices fell 3 percent on Wednesday after a record weekly build in U.S. crude inventories stoked investor worries about a global supply glut, days after analysts estimated higher monthly OPEC crude output. The U.S. Energy Information Administration said crude inventories rose 14.4 million barrels for the week ended Oct. 28, far more than the 1.0 million barrels analysts had expected. U.S. WTI crude fell by 3 percent, to $45.24 a barrel. Brent was down 3.2 percent, at $46.61, after sliding to $46.50, its lowest since Sept. 28. Spot gold hit a peak of $1,304.72, its highest since Oct. 4, and was up 1.1 percent at $1,302.20 an ounce. Silver was up 1.3 percent to $18.56 an ounce.

In US Equity Markets  stocks fell on Wednesday, with the S&P 500 headed for seventh day of losses as a tightening race for the White House rattled investors and a fall in oil also weighed on sentiment. The Dow Jones industrial average was down 0.23 percent, at 17,995.63.  The S&P 500 was down 0.41 percent, at 2,103.04 and the Nasdaq Composite was down 0.38 percent, at 5,134.13. Brocade Communications was up 10.3 percent after chipmaker Broadcom said it would buy the company for $5.5 billion. Broadcom was up 1.9 percent. Yelp jumped 9.7 percent after the consumer review website operator raised its full-year revenue forecast. Kate Spade and Estee Lauder fell 5.4 and 3.5 percent, respectively, after their quarterly sales missed estimates.

In Bond Markets U.S. Treasury yields fell to their lowest in a week on Wednesday as uncertainty ahead of next week's U.S. Presidential election enhanced the appeal of safe-haven bonds. Benchmark 10-year notes were last up 4/32 in price to yield 1.81 percent, down from 1.82 percent late Tuesday. The yields fell to 1.79 percent in overnight trading, the lowest since Oct. 26. A report from payrolls processor ADP on Wednesday showed U.S. private employers added 147,000 jobs in October, below economists' expectations.

Source: Institute of Trading and Portfolio Management