US Left Interest Rate Unchanged in November

News Event

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 Clsoing Wrap

In European Equity Markets Italian stocks underperformed on Thursday, as the country's bank stocks fell to five-week lows on jitters over next month's constitutional reform referendum. A bounce in basic resources and energy stocks helped the pan-European STOXX 600 index rise 0.6 percent, making up for losses seen in the previous session, but Milan's blue-chip FTSE MIB index ended flat. Italy's lenders UniCredit and Banco Popolare fell 5.6 and 4.8 percent respectively and were among the biggest losers on the STOXX index.  Ahold Delhaize fell 3.7 percent after the supermarket operator missed expectations for third-quarter results due to weakness at its U.S. grocery chains. Britain's Royal Mail lost 7 percent, the biggest STOXX loser.

In Currency Markets the dollar fell against a basket of currencies on Thursday, receding from a 13-1/2 year peak as traders digested prepared remarks from Federal Reserve Chair Janet Yellen and awaited additional comment in her testimony before lawmakers. The euro was up 0.1 percent at $1.0695, above the 11-1/2 month low of $1.0663 set on Wednesday. Against the yen, the dollar gained 0.38 percent to 109.50 yen, just off Wednesday's five-month high of 109.76, while the sterling eased 0.08 percent to $1.2432. The Australian dollar remained lower, with Aussie down 0.19 percent at $0.7465, while Kiwi held steady at $0.7071.  The dollar index was down 0.1 percent at 100.30 after hitting a 13-1/2 year high at 100.57 on Wednesday.

In Commodities Markets  oil prices rose on Thursday, with U.S. crude briefly rising as much as $1 a barrel, as expectations of an OPEC deal to limit production outweighed oversupply concerns, but a rallying dollar capped gains. Saudi Energy Minister Khalid al-Falih said he was optimistic the OPEC would formalize a preliminary oil output deal reached in Algeria in September.  Brent crude oil was up 23 cents a barrel at $46.86 after retreating from a high of $47.62. U.S. West Texas Intermediate crude was also up 32 cents at $45.89. It reached a session high of $46.58. Spot gold had added 0.3 percent at $1,228.06 an ounce, while silver was flat at $16.97 an ounce. Palladium rose 1 percent to $722.20, while platinum fell 0.5 percent to $939.50.

In US Equity Markets  the S&P and the Nasdaq were slightly higher in late morning trading on Thursday as investors assessed remarks by Federal Reserve Chair Janet Yellen at a congressional testimony. The Dow Jones industrial average  was down 0.09 percent, at 18,850.95. The S&P 500 was up 0.18 percent, at 2,180.87. The Nasdaq Composite index was up 0.25 percent, at 5,307.69. Eight of the 11 major S&P 500 sectors were higher, with the financial index's 0.75 percent rise leading the advancers.  Wal-Mart fell 4.4 percent after the world's largest retailer reporting lower-than-expected quarterly comparable sales. Cisco fell 5.3 percent after its current-quarter forecast fell below analysts' estimates.

In Bond Markets  the U.S. Treasury yield curve steepened on Thursday after U.S. data suggested the labor market is tightening and inflation is beginning to gain traction, which prompted investors to sell government debt with longer-dated maturities. U.S. consumer prices posted their biggest increase in six months, while housing starts rose to a 9-year high and jobless claims fell to the lowest level since November 1973. Yields on 10- and 30-year Treasuries touched their highest levels of the session after the data, steepening the Treasury yield curve as yields on shorter-dated maturities were flat. The 10-year note fell 5/32 in price to yield 2.242 percent. The 30-year bond fell 23/32 in price to yield 2.962 percent.

Source: Institute of Trading and Portfolio Management