US Binary Option SitesUK Binary Option Sites

Stocks Rise as Fed Announces $10 billion Tapering

Federal Reserve BankStocks in Asia accumulated overnight, this was initiated after the meeting of the Federal Reserve which took place in the US yesterday. Ben Bernanke the chairman of the Federal Reserve said that lowering of the $85 billion purchase program by $10 billion will take place. This was initiated after the economic information that was coming from the US, portraying that the economy of the US is stable in strength so as to begin targeting the increase of interest and inflation rates.

However, the lending amount was not changed by the Federal Reserve, it remained at 0.0-0.25%.

Thus it stated that the Treasury holdings and the mortgage debt it gets from banks every month will be lowered to $75 billion from $85 billion. Also in passing the Fed did mention that rock bottom interest rates and monetary policy will remain stable only until the rate of the unemployment decreases.

It has however, predicted the unemployment rate to fall to 6.3% in the coming year from the 7% state. In the last month the information given out from the US portrayed an increase in the economy of an annual state of 2.8% in Q3. Basically this was much faster than it was hoped for and an improvement too.

Stocks

The US Federal Reserve initiation to maintain the low rates gave the stocks in Asia a rise. Nikkei 225 in Japan rose to 1.76%, ASX 200 of Australia increased to 2.01%, Hang Seng of Hong Kong rose 0.07% and Shanghai of the Chinese gained 0.11%. The Dow Jones sector closed with 1.62% higher, S & P 500 rose to 1.66% and 1.15% for the Nasdaq Composite.

Currencies

Gains were initiated in the US Dollar in the trading session after the talks from the dovish were made which ignited a spark in trading. However, against the GBP the USD was 0.07% low after positive retail information and jobs were ignited yesterday from the UK. The Japanese Yen is still strong with supporters as the USD fell 0.35% but against the AUD the USD gained 0.20% and against the CAD it had 0.27%.

Commodities

After the announcements from the Fed the gold and silver both fell, Gold dropped 1.68% and silver 3.11%. For Crude Oil it rose to 0.02%, shutting off the strong USD as the sponsors focused on the future to double the demand all because of the economic global conditions were improved. Then the Natural Gas increased to 1.37% initiated by cold weather which made the supply to increase to a 7 month high.