Gold pressured as Fed reiterates rate hike bias

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Gold prices fell on Wednesday as the U.S. central bank reiterated its commitment to raising interest rates some time in the latter part of the year.

Gold for February delivery dropped $5.80, or 0.5%, to settle $1,285.90 an ounce but the precious metal pared some of its earlier losses after the Federal Reserve™s policy statement. March silver futures recovered to close flat at $18.09 an ounce.

The Fed remained upbeat about the economy, noting its œsolid growth and œstrong job gains. The central bank officials repeated that inflation is likely to reach the 2% target and that the Federal Reserve can be œpatient in tightening the monetary policy, according to the statement.

On Tuesday, gold prices enjoyed another move higher, after a sharp, unexpected fall in U.S. durable-goods orders hammered equities and spurred demand for haven plays.

Source : MarketWatch

Dollar Rises as Central Banks Diverge After Singapore Eases

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The dollar rose to almost the highest in a decade with the Federal Reserve seen continuing to move toward raising interest rates after Singapore became the latest nation to ease monetary policy, highlighting the diverging paths of global central banks.

The greenback advanced versus the euro amid plunging Greek markets as Prime Minister Alexis Tsipras stood by pledges to renegotiate the nation™s bailout. Policy makers in Washington are forecast to hold interest rates steady today as the end a two-day meeting before raising them by year-end. Singapore™s dollar tumbled to a four-year low. China™s yuan fell to a record discount against the central bank™s reference rate. Australia™s dollar rose.

The Bloomberg Dollar Spot Index, a gauge of the currency™s performance against 10 major peers, rose 0.3 percent to 1,157.57 as of 11:34 a.m. in New York. It closed at 1,161.42 in New York on Monday, the highest in data back to 2004. The measure has rallied after every Fed meeting since June.

The U.S. dollar appreciated 0.4 percent to $1.1334 per euro, after weakening 1.3 percent the previous day, the most since Oct. 15. It reached $1.1098 on Jan. 26, the strongest since September 2003. The yen rose 0.1 percent to 117.79 per dollar and strengthened 0.5 percent to 133.51 per euro.

Source : Bloomberg

U.S. Stocks Decline as Energy Slump, Fed Overshadow Apple Rally

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U.S. stocks fell, sending the Dow Jones Industrial Average to its biggest two-day loss in a year, as energy shares plunged and the Federal Reserve cited international risks to the American economy amid concerns about weakness in multinational earnings.

Energy companies slumped 3.9 percent as a group after oil retreated. Apple Inc. climbed 5.7 percent after reporting a record $18 billion in quarterly profit, one of the biggest in corporate history. Boeing Co. advanced 5.4 percent as it posted a quarterly profit that beat analysts™ estimates.

The Standard & Poor™s 500 Index fell 1.4 percent to 2,002.24 at 4 p.m. in New York. The Dow Jones Industrial Average lost 192.88 points, or 1.1 percent, to 17,194.33. The gauge fell 2.8 percent over two days. The Nasdaq 100 Index dropped 0.6 percent, erasing an earlier rally of 1.7 percent. The Chicago Board Options Exchange Volatility Index, known as the VIX, added 17 percent to 19.09, its biggest jump of the year.

The Fed also boosted its assessment of the economy and labor market, even as it expects inflation to decline further.

Fed officials are confronting divergent economic forces as they weigh the timing of the first interest-rate increase since 2006. Surprisingly strong job gains argue for tightening sooner, while inflation held down by a plunge in oil prices and a cooling global economy provides grounds for delay.

Source : Bloomberg

U.S. Stocks Advance as Apple, Yahoo Spur Tech Rally Before Fed

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U.S. stocks rose, with the Nasdaq 100 Index rebounding from its biggest drop since April, as Apple Inc. and Yahoo! Inc. rallied while investors awaited a Federal Reserve decision on interest rates.

The Nasdaq 100 added 1.5 percent at 9:32 a.m. in New York, after a 1.2 percent drop Tuesday. The Standard & Poor™s 500 Index increased 0.6 percent to 2,041.93.

Disappointing results from Caterpillar Inc. and Microsoft Corp. weighed on U.S. equities Tuesday, sending the Dow Jones Industrial Average tumbling 1.7 percent.

While the dollar™s climb is reducing profits at U.S. companies from Procter & Gamble Co. to Pfizer Inc. and Microsoft, more than 77 percent of S&P 500 members have still beaten analysts™ estimates so far this earnings season, according to data compiled by Bloomberg.

Source : Bloomberg

Hong Kong Share end 0.22% Higher

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Hong Kong shares edged up 0.22 percent Wednesday, reversing morning losses as investors brushed off a heavy sell-off on Wall Street that was fuelled by weak US data and disappointing corporate reports.

The benchmark Hang Seng Index gained 54.53 points to 24,861.81 on turnover of HK$80.37 billion (US$10.37 billion).

But in mainland China the benchmark Shanghai Composite Index fell 1.41 percent, or 47.22 points, to 3,305.74 on turnover of 341.6 billion yuan ($55.7 billion).

The Shenzhen Composite Index, which tracks stocks on China's second exchange, lost 0.71 percent, or 11.07 points, to 1,538.86 on turnover of 252.3 billion yuan.

Source : AFP