Markets Live: Markets spooked by dovish Fed

Here are the overnight market highlights:

SPI futures down 4 points to 6170

AUD +0.7% to 71.34 US cents
On Wall St near 4pm: Dow -0.6% S&P 500 -0.3% Nasdaq +0.1%
In New York, BHP +1% Rio +0.2% Atlassian +0.4%
In Europe: Stoxx 50 -1.1% FTSE -0.5% CAC -0.8% DAX -1.6%
Spot gold -0.4% to $US1301.15 an ounce at 12.59pm New York time
Brent crude +0.8% to $US68.18 a barrel
US oil +1.3% to $US59.80 a barrel
Iron ore -3.4% to $US84.30 a tonne
Dalian iron ore -0.1% to 613 yuan
LME aluminium -0.5% to $US1937 a tonne
LME copper -0.03 per cent at $US6457 a tonne
2-year yield: US 2.40% Australia 1.54%
5-year yield: US 2.33% Australia 1.55%
10-year yield: US 2.52% Australia 1.93% Germany 0.08%
US-Australia 10-year yield gap near 7.20am AEDT: 59 basis points

In a dramatic dovish tilt, the US Federal Reserve has scrapped plans for further official interest rate hikes this year and declared it would halt its balance-sheet run-off in September, shutting dead its double-barreled tightening strategy of 2018.

After two days of meetings, policy makers lowered their forecasts for the economy and left the benchmark rate at 2.25 per cent to 2.5 per cent on Wednesday (Thursday).

In a news conference, Fed chairman Jerome Powell reiterated the Fed would continue to be «patient» on its policy path.

Jacob Greber has the full story here.

Fed chairman Jerome Powell says there is currently no need to move rates in either direction.

Fed chairman Jerome Powell says there is currently no need to move rates in either direction.Credit:Andrew Harrer

Good morning and welcome to Markets Live for Thursday.

Your editor today is William McInnes.

What a night it’s been! The Fed turned more dovish and the likelihood of the UK leaving the EU without a deal increased. We’ll see how the local market reacts today.

The blog is not intended as investment advice.




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