SINGAPORE (AP) – Asian equities were shuffled on Thursday after the US Federal Reserve kept its interest rate intact and had no indication that it was likely to cut this year. Trade in Japan and mainland China was light.
On Wednesday, the Federal Reserve left its key interest rate – which determines the cost of borrowing for individuals and corporates – as expected at a range of 2.25% to 2.5%. 19659004] However, some traders had hoped the Fed would signal a rate cut to lift continued low inflation to its target of 2%. The Fed's preferred inflation barometer for twelve months is around 1.5%.
Jerome Powell, chairman, resigned at a press conference. "The committee is familiar with our current political stance," he said.
Powell added that current inflation figures may be temporary and do not fully reflect real price increases.
"Stock markets so much sought more from the Fed and were shocked when Chairman Powell said the Fed does not see a convincing case to move interest rates both ways," said Stephen Innes of SPI Asset Management in a comment.
Stocks Down on Wall Street After the Ascent At the beginning of the day, there were strong earnings reports.
The broad S & P 500 index fell 0.8% to 2,923.73 on Wednesday. The Dow Jones Industrial Average fell 0.6% to 26,430.14 and the Nasdaq Composite 0.6% to 8,049.64. The Russell 2000 Small Business Index fell 0.9% to 1,576.38.
ENERGY: US crude oil prices fell 14 cents to $ 63.46 a barrel in electronic trading on the New York Mercantile Exchange. It lost 31 cents to settle on Wednesday at $ 63.60 a barrel. Brent crude, the international standard, dropped 19 cents to $ 71.99 a barrel. It added up 12 cents, closing at $ 72.18 a barrel in the previous session. CURRENCIES: The dollar rose to 111.54 Japanese yen from 111.38 yen late Wednesday.
The euro rose from $ 1,1198 to $ 1,1207.