Gold Climbs Most Since January as Fed Official Cut Rate Outlook

---

Gold prices climbed the most since January as Federal Reserve officials said an increase for interest rates is unlikely next month and cut their outlook for borrowing costs.

U.S. economic growth has “moderated somewhat” and inflation has declined further below where officials would like it, the Federal Open Market Committee said in a statement Wednesday. The policy makers lowered their median estimate for the federal funds rate at the end of 2015 to 0.625 percent, compared with 1.125 percent in December forecasts.

In 2015, gold prices fell 1.4 percent on concern that rates would rise, cutting the appeal of the metal, which generally offers returns through price gains. The benchmark rate has been near zero since 2008.

Gold for immediate delivery climbed 1.6 percent to settle at $1,167.61 an ounce, the biggest gain since Jan. 30.

Investors had exited gold in anticipation of a nearby increase for borrowing costs, which lifts the appeal of assets with better yield prospects such as bonds and equities. About $4 billion has been wiped from the value of exchange traded funds backed by bullion in March, heading for the biggest monthly drop since September.

Source : Bloomberg

Dollar Tumbles Most Since 2009 After Fed Cuts Rate Projections

---

The dollar tumbled the most in six years after the Federal Reserve slashed projections for U.S. interest rates, tempering the removal of a promise to remain “patient” on raising borrowing costs.

The greenback weakened versus most major peers as central bank officials almost halved their median estimate for the target rate this year. The dollar has been on a tear for the last six months, with traders boosting bets for further appreciation to a record high, as the Fed moves closer to tightening for the first time in almost a decade.

The Bloomberg Dollar Spot Index, a gauge of the currency’s performance against 10 major peers, slumped 1.75 percent to 1,194.89, the most since the Fed announced bond purchases in March 2009. On Friday, the index reached the highest level based on closing prices going back to 2004.

The dollar depreciated 1 percent to 120.11 yen and lost 2.5 percent to $1.0864 per euro.

Source : Bloomberg

U.S. Stocks Rally as Fed Statement Spurs Bets on Rate Timing

---

U.S. stocks climbed, erasing an earlier loss, after the Federal Reserve said data suggest economic growth has moderated, fueling speculation it won’t be in a rush to raise interest rates.

The Standard & Poor’s 500 Index rallied 1.2 percent to 2,099.26 at 4 p.m. in New York. The Russell 2000 Index advanced 0.8 percent to a record. The Nasdaq Composite added 0.9 percent, and briefly climbed back above 5,000.

The central bank said higher interest rates in April are unlikely and it won’t tighten until it is “reasonably confident” inflation will return to its target and the labor market improves further. The Fed also dropped an assurance it will be “patient” in raising interest rates.

Officials lowered their median estimate for the federal funds rate at the end of 2015 to 0.625 percent, compared with 1.125 percent in December forecasts. The median estimate for the end of 2016 declined to 1.875 percent from 2.5 percent, according to the Federal Open Market Committee’s quarterly Summary of Economic Projections.

Source : Bloomberg

European Stocks Rise as U.K. Shares Climb After Osborne Budget

---

European stocks climbed as U.K. shares rallied after a budget presentation and Swedish equities jumped after a rate cut.

The Stoxx Europe 600 Index added 0.3 percent to 398.65 at the close of trading, erasing earlier losses of as much as 0.4 percent. Investors are also awaiting a Federal Reserve policy decision for cues on the timing of a rate increase.

The U.K.’s FTSE 100 Index climbed 1.6 percent as Chancellor of the Exchequer George Osborne raised forecasts on Britain economic growth for 2015 and 2016. The OMX Stockholm 30 Index jumped 1.7 percent to a record as Sweden’s central bank cut its key interest rate and expanded a quantitative-easing program.

Carmakers posted the worst drop among 19 industry groups, with Bayerische Motoren Werke AG falling 4.2 percent after forecasting slower earnings growth in 2015. The gauge of auto companies fell for a second day, after rising to a record on Monday.

Source : Bloomberg

U.S. Stocks Decline for Second Session Amid Fed Rate Speculation

---

U.S. stocks fell for a second day as investors speculated the Federal Reserve will signal a change in its stance on the timing for higher interest rates.

The Standard & Poor’s 500 Index slipped 0.4 percent to 2,065.93 at 12:27 p.m. in New York. The gauge hasn’t posted a two-day gain in a month. The Dow Jones Industrial Average lost 111.29  points, or 0.6 percent, to 17,737.79. The Nasdaq Composite Index fell 0.3 percent.

The Fed will release its policy statement at 2 p.m. in Washington, and Chair Janet Yellen speaks to the press at 2:30 p.m. Yellen said in December the “patient” phrase made a move unlikely in the next two meetings. Dropping it would set the stage for a rate increase as early as June.

Speculation that a strengthening labor market is pushing the central bank closer to a rate increase has weighed on U.S. equities, making them among the worst-performing developed markets this year. Fed stimulus has helped spur a six-year bull market that made the S&P 500 more than triple since a low in in 2009.

Source : Bloomberg