US stocks mixed as Fed minutes back early QE tapering

AFP, (10/7) -- US stocks ended mixed on Wednesday after the minutes of the Federal Reserve's last policy meeting suggested it could end its QE stimulus program by the end of the year. The Dow Jones Industrial Average edged down 8.68 (0.06 percent) to 15,291.66. The broad-based S&P 500 was also little-changed, rising 0.30 (0.02 percent) to 1,652.62. Meanwhile the tech-rich Nasdaq Composite Index climbed 16.50 (0.47 percent) to 3,520.76. Minutes of the Fed's last policy meeting showed a significant bias toward winding up the QE bond-buying program even before the mid-2014 target announced by Fed chief Ben Bernanke. Yet, the minutes noted, 'many members indicated that further improvement in the outlook for the labor market would be required' before a reduction in the asset purchases would be merited. The minutes were consistent with the Fed's stance on tapering, said Alan Skrainka,  chief investment officer of Cornerstone Wealth Management. 'No big surprises here at all,' Skrainka said. 'It just reinforced the view that QE will be tapered soon, but the exact pacing and timing will depend on economic data.'

Emas masih ditopang prospek pelonggaran stimulus the Fed

New York, 10/07 (Bloomberg) – Emas berjangka melonjak ke tertinggi satu minggu setelah risalah dari hasil pertemuan terakhir Federal Reserve menunjukan bahwa banyak pejabat ingin melihat lebih banyak tanda-tanda pertumbuhan tingkat pekerjaan sebelum mereka mulai memperlambat laju pembelian obligasi. Emas berjangka untuk pengiriman Agustus naik 0,3 persen menjadi $ 1,249.10 di perdagangan elektronik pada pukul 3:08 p.m. di Comex, New York. Sebelumnya, harga menyentuh $ 1,264.50, tertinggi untuk kontrak paling aktif sejak 2 Juli. Logam ini ditutup naik 0,1 persen pada posisi $ 1,247.40 di penutupan perdagangan reguler. Hingga kemarin, emas masih turun 26 persen tahun ini, menghapus $ 62 milyar dari nilai produk reksadana ETF yang diperdagangkan di bursa berbasis logam kuning tersebut karena sebagian investor telah kehilangan kepercayaan kepada emas sebagai penyimpan nilai. Para pejabat the Fed melakukan pertemuan sebelum rilis laporan pekerjaan dari Departemen Tenaga Kerja untuk bulan Juni yang melebihi harapan, dengan ekonomi menambahkan sekitar 195.000 pekerjaan. Bank sentral mulai membeli $ 40 milyar per bulan atas sekuritas berbasis hipotek pada bulan September dan mengumumkan pembelian Treasury pada bulan Desember sebesar $ 45 milyar per bulan. Program yang dikenal sebagai pelonggaran kuantitatif putaran ketiga (QE3) dari the Fed, telah memperluas neraca dari bank sentral AS tersebut ke rekor $ 3.49 trilyun. (brc)

 

Gold Rises to One-Week High as Fed Members Seek Job Gains

Bloomberg, (10/7) -- Gold futures jumped to a one-week high as minutes from the Federal Reserve’s last meeting showed many officials want to see more signs of employment picking up before they begin slowing the pace of bond purchases. “Many members indicated that further improvement in the outlook for the labor market” is needed before tapering the rate of asset buying, according to the record of the Federal Open Market Committee’s June gathering released today. The jobless rate held at 7.6 percent in June. Bullion doubled from the end of 2008 to a record $1,923.70 in September 2011 as record global stimulus boosted the appeal of inflation hedges. “The gold market is pleasantly surprised, and is rallying on the minutes,” Tom Power, a senior commodity broker at R.J. O’Brien & Associates in Chicago, said in a telephone interview. “The unemployment number is the key number that the Fed is watching, and with that still above 7.5 percent, investors think that easing is here to stay for some time.” Gold futures for August delivery climbed 0.3 percent to $1,249.10 in electronic trading at 3:08 p.m. on the Comex in New York. Earlier, the price touched $1,264.50, the highest for a most-active contract since July 2. The metal settled up 0.1 percent at $1,247.40 at the close of regular trading. Through yesterday, gold dropped 26 percent this year, erasing $62 billion from the value of exchange-traded products backed by the metal, as some investors lost faith in bullion as a store of value. Fed officials met before the Labor Department’s jobs report for the month of June exceeded expectations, with the economy adding 195,000 jobs. The central bank began purchasing $40 billion a month of mortgage backed securities in September and announced $45 billion a month of Treasury purchases in December. The program, known as QE3 for the Fed’s third round of quantitative easing, has expanded the central bank’s balance sheet to a record $3.49 trillion.

 

Dollar Falls as Bernanke Says Stimulus Needed Before Claims Data

Bloomberg (11/7) -- The dollar declined versus most of its major peers after Federal Reserve Chairman Ben S. Bernanke said inflation and unemployment rates show the U.S. economy still requires very stimulative monetary stimulus. The greenback fell to a three-week low against the euro before a report today that may show continuing jobless claims rose. That underscores views expressed in minutes of the Fed’s last meeting released yesterday, which showed many policy makers want to see more signs that employment is picking up before they’ll begin slowing bond purchases. The yen weakened against the euro ahead of a policy decision today by the Bank of Japan. The dollar slid 1.3 percent to $1.3141 per euro at 8:40 a.m. Tokyo time after earlier touching $1.3207, the weakest since June 21. It reached 98.27 yen, the least since June 27, before trading at 98.94 yen, down 0.8 percent from yesterday. Japan’s currency lost 0.5 percent to 129.96 per euro.

Wall St. Berakhir mixed pasca risalah the Fed

New York, Bloomberg (10/07) – Saham AS berakhir mixed pada hari Rabu setelah risalah dari pertemuan kebijakan terakhir Federal Reserve memberikan isyarat untuk mengakhiri program stimulus QE pada akhir tahun ini. Indeks Dow Jones Industrial Average turun tipis 8,68 (0,06 persen) menjadi 15,291.66. Indeks berbasis luas, S & P 500 juga sedikit berubah, naik 0,30 (0,02 persen) menjadi 1,652.62. Sementara itu Nasdaq Composite Index naik 16,50 (0,47 persen) menjadi 3,520.76. Risalah pertemuan kebijakan terakhir the Fed menunjukkan bias signifikan terhadap penutupan program pembelian obligasi QE bahkan sebelum target pertengahan 2014 yang dicanangkan oleh Ketua The Fed, Ben Bernanke. Namun, risalah mencatat, 'banyak anggota menunjukkan bahwa perbaikan lebih lanjut terhadap prospek pasar tenaga kerja masih akan diperlukan' sebelum menurunkan pembelian aset. Risalah ini konsisten dengan sikap the Fed untuk memperkecil program, kata Alan Skrainka, kepala investasi dari Cornerstone Wealth Management. 'Tidak ada kejutan besar sama sekali,' kata Skrainka. 'Itu hanya memperkuat pandangan bahwa QE akan segera meruncing, tapi waktu yang tepat untuk menurunkannya akan tergantung pada data ekonomi.' (brc)