Markets play out Fed decision - 18.12.2015

US stocks looked down on Thursday after three sessions of gains. The decline was provoked by wobbling global economic growth and fall in energy and materials stocks following the stock market rally on Wednesday after the US Fed raised interest rates by 25 basis points. US dollar index, which measures the dollar value against six major currencies, fell 0.4% to 99.892 after 1.2% rise on Thursday following the Fed interest rate decision. Dow Jones Industrial Average lost 1.43% while Nasdaq 100 composite lost 1.35%. S&P 500 fell 1.5% to 2,041.89 on Thursday with 9 out of 10 its sectors being in the red except for utilities (+0.1%). Energy sector lost 2.45% on slumping oil prices: Exxon edged 1.5% lower while Chevron fell 3.1%. Basic materials lost almost 2%: Newmont Mining shares tumbled 7.7% becoming the bottom-performer of the sector. Apple Inc. fell 2.1% on worries about potential fall in iPhone shipments which weighted on S&P and Nasdaq indices. Speaking of other bottom performers, Oracle fell 5.1% on weak third-quarter forecast. The trading volume at US exchanges was 8.0mln shares which is above the 20 trading days average of 7.2mln shares. No important macroeconomic data is expected today in US.

European stocks sky-rocketed on Thursday after the US Fed interest rate hike as it boosted the investors’ confidence in the strength of the world economy. In fact, the move and the Fed comments that they began a gradual tightening cycle formalized the sound economic conditions in the US. The pan-European FTSEurofirst edged up 2.2% while German Dax 30, French CAC 40 and British FTSE 100 advanced 1.5 to 2.7%. The top performers in Europe were the automobiles, banking and insurance sectors adding 2.4 to 3.1%.However, mining sector underperformed as the Fed decision resulted in slumping copper, aluminium and nickel prices. EUR/USD pair edged up 0.3% to $1.0852 having lost 1.2% this week. As to economic data, today at 10:30 CET the November consumer price index was released in Great Britain the data being positive and in line with expectations: +0.1% from October and +1.2% year over year. No more important macroeconomic data is expected today in Eurozone.

Asian stocks were falling on Friday following Wall Street decline. Japanese Nikkei 225 index lost 1.9% overnight and 1.3% this week. USD JPY is traded around 121.50 losing about 0.9%. Hang Seng index lost 0.5% as Hong Kong stocks were correcting down after the rally that followed the long-awaited US interest rates hike on Wednesday. The Chinese yuan gained ground against the US dollar on Friday but lost 0.4% this week and its official rate is set at 4-1/2 year lows.

Gold spot is traded at 1054.8 today being slightly up following the 2% decline yesterday.

In the oil market the concerns over the global supply glut continue weighing on the energy prices. On Thursday Brent fell almost to the level of 2004 but today rebounded rising 0.2% to $37.40 a barrel while WTI is traded at $35.01 a barrel losing almost 0.2% today.