· Dow futures drop more than 200 points after Fed signals no rate hikes until 2023
U.S. stock futures were lower early Thursday morning as traders digested the Federal Reserve’s pledge to keep rates low over the next few years.
Dow Jones Industrial Average, which earlier traded just below the flatline, fell 244 points. S&P 500 and Nasdaq 100 futures also traded in negative territory.
· Stocks falter as Fed fails to offer fresh cause for cheer
Stocks fell and the dollar advanced on Thursday after the Federal Reserve pledged to keep interest rates low for a long time but stopped short of offering further stimulus to shore up a battered U.S. economy.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost 1.01%, running out of steam after five straight days of gains. Japan’s Nikkei shed 0.63%.
· Japan stocks fall as U.S. rate outlook boosts yen
Japanese stocks fell on Thursday, dragged lower by major exporters after the U.S. Federal Reserve’s pledge to keep rates near zero until at least 2023 sent the yen to a seven-week high against the dollar.
The Nikkei 225 index fell 0.67% to 23,319.37, with consumer discretionary and industrial sectors leading the decline. The broader Topix fell 0.36% to 1,638.40.
The U.S. central bank on Wednesday vowed to keep interest rates near zero until inflation is on track to overshoot its 2% target, pushing the yen to 104.80 per dollar, the strongest since July 31.
The yen’s strength weighed on the auto sector, a major exporter. Honda Motor declined 1.5%, Isuzu Motors Ltd lost 5.09% and Nissan Motor Co fell 2.37%.
The Bank of Japan kept monetary policy unchanged at a meeting earlier on Thursday. Traders now focus on BOJ Governor Haruhiko Kuroda’s press conference, where he is likely to emphasise his willingness to cooperate with new Prime Minister Yoshihide Suga, analysts said.
· China shares end lower as cost woes hit hog-farming stocks
China shares ended weaker on Thursday, with healthcare and consumer firms leading the losses amid sell-off pressure after a wave of new listings, while weakness in hog-farming companies dragged agricultural stocks lower.
At the close, the Shanghai Composite index was down 0.41% at 3,270.44, while the blue-chip CSI300 index lost 0.53% to 4,632.71.
Healthcare and consumer sector shares fell with the consumer staples sector losing 2.38% and the healthcare sub-index down 2.12%.
Shares in China’s major hog-farming companies also dropped on worries over rising costs after corn prices spiked. The agricultural sub-index was down 1.5%.
· European stocks open lower as markets react to Fed meeting
European stocks opened lower Thursday as investors around the world react to the latest U.S. Federal Reserve meeting.
The pan-European Stoxx 600 dropped 1.2% at the start of trading, basic resources and tech stocks falling 2% to lead losses as all sectors and major bourses slid into the red.
Reference: CNBC, Reuters
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