Aust dollar weakens on Fed fears

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The Australian dollar is weaker as the US Federal Reserve begins its two-day meeting on monetary policy.

At 7am (AEDT), the local currency was trading at US76.18c, down from US76.29c on Tuesday.

The US dollar rose against a range of currencies overnight as the Fed's Federal Open Market Committee began its key meeting on interest rates.

Traders are waiting for Thursday morning's communique to see if Fed policymakers drop the word "patience" in regards to a possible rate rise.

Weaker commodity prices, in light of a firmer greenback, is also weighing on the Australian dollar.

The local unit weakened on Tuesday after the minutes of the Reserve Bank of Australia's March meeting convinced traders a near-term rate cut was more likely.

Source : MarketsSpectator

Gold Futures Decline to 18-Week Low as Investors Sell ETP Assets

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Gold futures slumped to an 18-week low as investors exited funds backed by the metal before a Federal Reserve policy meeting.

Holdings in gold exchange-traded products fell for a 14th straight day Monday, the longest run in more than a year. Almost 90 percent of economists surveyed by Bloomberg predict Fed officials will drop a pledge to be “patient” on raising interest rates from a policy statement due at the conclusion of their gathering Wednesday.

The precious metal has fallen 3 percent in 2015 on concern rates will rise, sending investors to assets with better yield prospects such as bonds and equities. Money managers have cut their gold net-long wagers for six straight weeks, and ETP assets are at the lowest since Jan. 21.

Gold futures for April delivery fell 0.4 percent to settle at $1,148.20 an ounce at 1:43 p.m. on the Comex in New York. The price touched $1,141.60, the lowest since Nov. 7, when the metal reached a four-year low of $1,130.40.

Source : Bloomberg

U.S. Stocks Fall as Commodity Shares Retreat Before Fed Meeting

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U.S. stocks retreated from the biggest rally in more than a month as commodity and consumer shares slumped before the Federal Reserve’s interest rate decision.

The Standard & Poor’s 500 Index dropped 0.3 percent to 2,074.17 at 4 p.m. in New York, after earlier falling as much as 0.8 percent. The Nasdaq Composite Index rose 0.2 percent, boosted by Apple Inc. and Facebook Inc.

The S&P 500 has lost 2 percent from its March 2 record as concerns mounted that the surging dollar will hurt corporate earnings. Fed officials will assess the economy and debate the timing of the first interest-rate increase since 2006. The Fed may remove wording describing its stance to raising rates as “patient.”

Source : Bloomberg

Europe Stocks Fall as German Investor Confidence Misses Forecast

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European stocks slipped as a measure of German investor confidence missed forecasts.

Automakers led declines, with Peugeot SA sliding 5.9 percent. Holcim Ltd. and Lafarge SA dragged construction stocks lower. A measure of energy stocks posted the best performance of the 19 industry groups on the Stoxx Europe 600 Index.

The Stoxx 600 slid 0.7 percent to 397.36 at 4:30 p.m. in London, paring earlier losses of as much as 1.1 percent. The gauge closed yesterday at its highest level since June 2007 and 1.3 percent away from a record reached in 2000. It has gained 16 percent this year as the European Central Bank embarked on quantitative easing to stimulate growth and boost inflation. Euro-area core consumer prices rose 0.7 percent from a year ago in February, compared with 0.6 percent in January, Eurostat showed today.

Source : Bloomberg

U.S. Stocks Drop With Copper, Oil; Treasuries Rise as Fed Meets

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U.S. stocks fell as commodity shares dropped amid slumps in copper and crude prices. Treasuries rose as economic data fueled speculation the Federal Reserve won’t be in a hurry to raise interest rates after its two-day meeting.

The Standard & Poor’s 500 Index dropped 0.6 percent at 12 p.m. in New York, following a 1.4 percent surge Monday that was the biggest in five weeks. DuPont Co. sank 3.2 percent to lead a 1 percent decline in the Dow Jones Industrial Average. The Stoxx Europe 600 Index slipped from a seven-year high. The Bloomberg Dollar Spot Index retreated 0.1 percent. The 10-year Treasury yield declined two basis points to 2.05 percent. U.S. oil fell 1 percent, while copper lost the most in a week.

The S&P 500 has alternated between up and down days for the better part of two weeks, as investors assess data for clues on the timing of the Fed’s next move on interest rates. Oil’s plunge toward a bear market damped the outlook for inflation. Chair Janet Yellen will hold a press conference after the policy announcement on Wednesday. The Fed may remove wording describing its stance to raising rates as “patient.”

Source : Bloomberg