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US markets close lower after Fed decision - 30.10.2014
European stocks advanced on Wednesday ahead of the statement from the US Federal Open Market Committee. France’s CAC 40 index rose 0.2% to 4,120.37. Germany’s DAX 30 index gained 0.5% to 9,111.09. The U.K.’s FTSE 100 index picked up 0.8% to 6,455.85. The Stoxx Europe 600 index added 0.3% to 329.36, on track for its highest closing level in three weeks. No major economic data were expected to be released during the day and markets anticipated the FOMC statement to announce the end of the quantitative easing program and issue a dovish guidance on interest rates. Stocks in Asia rose Wednesday ahead of a U.S. Federal Reserve announcement on quantitative easing and after a rally on Wall Street on Tuesday. The Nikkei gained 1.5% to 15,553.91, helped by a stronger dollar and earnings from heavyweights such as Nomura Holdings and Hitachi Construction Machinery. On Thursday morning stocks in Japan rose as the Federal Reserve’s statement that the U.S. labor market was improving and interest rates would remain low for a "considerable time" boosted investor optimism about US economy. The Nikkei benchmark rose 0.7 percent to 15,665.24 points by mid-morning, the highest since October 9.West Texas Intermediate Crude Oil fell from a one-week high after data from Energy Information Administration, the Energy Department’s statistical arm, showed crude stockpiles rose as output surged to a record high in the US, the world’s biggest oil consumer. WTI for December delivery dropped as much as 45 cents to $81.75 a barrel in electronic trading on the New York Mercantile Exchange, and was at $81.84 at 4:40 p.m. Seoul time. Brent Oil for December settlement declined as much as 32 cents, or 0.4 percent, to $86.80 a barrel on the London-based ICE Futures Europe exchange. The contract rose 1.3 percent yesterday.
Gold tumbled as markets priced in the reduced expectation of inflation after the Federal Reserve ended its bond purchasing program. Gold for immediate delivery dropped 1.4 percent to $1,211.68 an ounce at 3:49 pm New York time, heading for the biggest drop since October 3. Prices touched $1,208.50, the lowest since October 8. Goldman Sachs Group Inc. predicts gold prices will drop to $1,050 over the next 12 months as the US economy accelerates. Silver futures for delivery in December added 0.2 percent to $17.264 an ounce on the Comex. On the New York Mercantile Exchange, palladium futures for delivery in December advanced 0.9 percent to $800.70 an ounce. Prices rose for a ninth straight sessions, the longest rally since August 18. Platinum futures for January delivery gained 0.2 percent to $1,269.20 an ounce.