icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Market Buzz: Divided on taper, Fed slows trade

Market Buzz: Divided on taper, Fed slows trade
Stocks are expected to fall for a second day after the US Federal Reserve only provided vague clues as to when it intends to start tapering off its stimulus.

Minutes said the board is ‘broadly comfortable’ with the idea of winding-down the $85 billion-per-month bond-buying program, yet deems the timing ‘not yet appropriate’, providing no precise timeline.

Trading Thursday will be “choppy,” Moscow-based BCS Financial Group noted to Bloomberg.

“Markets are seeking clarity to the timing and magnitude of any tapering.”

The MICEX, which is driven by heavyweights such as Lukoil, Gazprom, and Sberbank, rose 0.18 percent to 1379.02, and the dollar-based RTS climbed 0.29 percent to 1316.31.

Russian markets will also be handicapped by falling oil prices. WTI hit a two-week low following the release of Fed minutes, and has neutralized to $103.84 per barrel, and Brent futures slid 0.19 percent to $109.60 per barrel.

Asian equities are faltering, despite a stronger-than-expected PMI reading for August. Hong Kong stocks are heading for their longest losing streak in over a year, down 0.63 percent. Japan’s Nikkei 225 fell 0.49 percent, and the Shanghai Composite dropped 0.15 percent.  

All major European indices are negative on the murky scale-back minutes. Amsterdam’s EURO Stoxx fell 0.48 percent, London’s FTSE 100 dropped 0.97 percent, France’s CAC lost 0.34 percent, and Germany’s DAX is down 0.18 percent.

At market close, US stocks finished down. The Dow Jones finished down 0.70 percent, the S&P 500 dropped 0.58 percent, and the NASDAQ dipped 0.38 percent.

Dear readers and commenters,

We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system.

Sorry for the inconvenience, and looking forward to your future comments,

RT Team.

Podcasts