Sep
24
Fed failed to boost global markets
Initially the market on Wall Street climbed, putting the Dow Jones industrial average 82 points to cross 10,000 units for the first time since October, but the index finished the day with a loss of 81 points.
The Fed said the pace of economic activity has increased since its last meeting in August.
The Dow Jones fell 81.32 points, or 0.8% , to 9748.55. The Standard Poor #39; s 500 index shrank 10.79 points, 1%, to 1060.87, while the Nasdaq composite index fell 14.88 whole, 0.7%, to 2131.42.
Stocks often display an erratic course in the days when the Fed meets to discuss interest rates, as investors analyzed the declarations accompanying the decision on the matter, seeking clues about the economy and about what might be the next steps of the bank.
Governors of the Fed added that it would keep interest rates on short-term lows, near zero, over an extended period.
The Fed decision on interest and vision regarding the economy improved coincided with what economists had expected, but provided no market reason to go higher.
The market got exactly what we expected, said Thomas Wilson, managing director of institutional investment and private client group at Brinker Capital, based in Berwyn, Pennsylvania.
Another drop in oil prices had an impact largely on the actions of the industrial and energy companies. The price of crude oil for November delivery fell nearly 4% or $ 2.79, to close at $ 68.97 abarrel on the New York Mercantile Exchange.
The dollar rose against major currencies. Gold fell.
In Europe, Britain's FTSE 100 had a decrease of 0.1%, to settle at 5139.37 points, the German DAX also fell 0.1%, to 5702.05 integers, and the French CAC-40 was contracted in the same proportion, to 3821.79 points.
Most Asian stocks closed moderately lower, while the Japanese market did not operate on a national holiday.
By the end of the week, markets will focus on the meeting of Group of 20 leading developed and emerging economies in the world, take place Thursday and Friday in Pittsburgh. Investors will put their attention on Germany in Sunday's election.
We still have a bit of calm before we see what happens later, said James Hughes, market analyst at CMC Markets . We have the G-20 and the FOMC, and that's really what's going to where they are going to dominate these markets, he said.
Hong Kong, the Hang Seng index closed a loss of 105.62 points, or 0.5%, at 21,595.52, while South Korea KOSPI fell 7.41 points, or 0.4%, to 1711.47. The main indicator of the stock of Australia won 1.5%, while in China the Shanghai index fell 1.9%.