U.S. Stocks Advance Amid Wide Swings Before Fed Policy Decision

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U.S. stocks closed higher, boosted by a rebound in Apple Inc., after swinging in a wide range amid light volume a week before the Federal Reserve makes a decision on interest rates.

The Standard & Poor’s 500 Index gained 0.5 percent to 1,952.23 at 4 p.m. in New York, after rising as much as 1.2 percent.

Investors assessed data today showing fewer Americans lined up last week to file for jobless benefits, highlighting the persistent strength of the labor market. Claims for unemployment insurance fell by 6,000 to 275,000 in the week ended Sept. 5, matching a Bloomberg survey of economists’ forecasts. A report yesterday showed job openings surged to a record in July, as hiring cooled, a sign employers are having a hard time finding qualified workers amid tightening labor market.

As investors anxiously await the Fed’s looming decision on whether to raise rates this month, policy makers at the Bank of England said today that market turmoil related to China’s slowdown hasn’t shaken their view that the time for a rate increase is approaching. Similar to recent comments from Fed officials, the BOE also stuck to its view that inflation will start to pick up around the turn of the year.

With the timing of the Federal Reserve’s first rate increase since 2006 taking center stage, traders remain confident the Fed will raise borrowing costs this year. They’re pricing in a 28 percent chance the central bank will increase rates next week, down from 48 percent before China’s devaluation, while odds of a move at the December gathering are about 60 percent, according to data compiled by Bloomberg.

Source: Bloomberg

U.S. Stocks Rebound in Choppy Market as Oil Leads Commodity Gain

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U.S. stocks rose, with equities swinging in a wide range amid light volume, as investors assessed data showing a resilient labor market a week before the Federal Reserve’s policy decision. Crude led gains in commodities, while global shares retreated on concern China remains a threat to growth.

The Standard & Poor’s 500 Index rebounded from a selloff yesterday in a market increasingly characterized by sharp shifts in sentiment amid the looming threat of higher interest rates. Equities from Asia to Europe declined on renewed worry U.S. tightening as soon as next week would damp global growth, while a downgrade of Brazil’s debt to junk roiled markets there and underscored weakness in developing nations.

A second day of robust U.S. jobs data bolstered the case for higher rates, while price data from China added to the challenges facing policy makers in Asia’s largest economy. The Bank of England said turmoil on the global financial markets hasn’t shaken its economic outlook, fueling speculation the Fed may also look past recent turbulence at its policy meeting.

While economists predict the Fed will increase its key rate next week, futures traders price the odds of an increase at 28 percent, assuming the effective fed funds rate will average 0.375 percent after the first increase.

In China, comments by Premier Li Keqiang that the country still has “sufficient capability to respond” if growth falls below a reasonable range failed to buttress markets as data showed producer prices fell by the most since 2009.

The Standard & Poor’s 500 Index gained 0.6 percent to 1,953 at 12:39 p.m. in New York, after falling 1.4 percent yesterday. The Dow Jones Industrial Average added 82.74 points, or 0.5 percent to 16,336.31. The Nasdaq Composite Index rose 0.9 percent. Trading in S&P 500 companies was 9 percent below the 30-day average for this time of day.

Source: Bloomberg

Yen Drops on Reduced Refuge Demand as Japan Considers Stimulus

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The yen weakened for a third day against the dollar on speculation Japan may expand monetary and fiscal stimulus while a global recovery in risk sentiment sapped haven demand for the currency.

Japan’s currency dropped versus all of its major peers as global equities rallied. The Shanghai Composite Index rose for a second day, after China’s finance ministry pledged to accelerate construction of some major projects and reduce companies’ tax burden.

The yen weakened 0.6 percent to 120.50 per dollar at 5 p.m. New York time, reversing some of the 2.2 percent rally in August. Japan’s currency depreciated 0.6 percent to 135.04 per euro. The shared currency was little changed at $1.1207.

Source: Bloomberg

Emas Berjangka Catat Penutupan Terendah Dalam Sebulan

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Emas berjangka mencatatkan penutupan terendah dalam satu bulan pada hari Rabu, akibat kenaikan dalam ekuitas Asia dan Eropa serta penguatan dalam dolar AS yang membuat investor menjauh dari logam mulia.

Emas untuk pengiriman Desember turun $ 19, atau 1,7%, untuk menetap di level $ 1.102 per ons di Comex. Yang merupakan harga terendah sejak 7 Agustus lalu. Harga emas telah turun dalam 10 dari 12 sesi terakhir. Itu belum termasuk hari Senin, untuk harga penetapan Comex karena liburan Hari Buruh.

Saham Asia dan Eropa mengalami reli, sementara saham-saham AS diperdagangkan lebih rendah di penetapan Comex dalam reli terbaik kedua mereka dalam tahun ini pada hari Selasa.

Minat atas resiko dikombinasikan dengan penguatan dolar yang diukur dengan U.S. ICE Dollar index membebani logam kuning dalam mata uang dolar.

Logam lainnya, perak untuk Desember ditutup dengan kerugian 17,9 sen atau 1,2%, di level $ 14,576 per ons.(frk)

Sumber: Bloomberg