Wall St climbs after Fed stands pat on rates

Fed in the spotlight: With most analysts not expecting a change in US interest rates (http://www.marketwatch.com/story/fed-hawks-will-leverage-inflation-data-to-get-their-way-doves-will-counter-with-retail-sales-2016-09-16), the talking point will be the Federal Open Market Committee’s accompanying statement.

British banks have suffered since the country voted in June to leave the European Union, with the Bank of England cutting interest rates down to record lows. Energy and metals prices are rising as the dollar gets a bit weaker. The S&P 500 was up 7 points, or 0.3%, to 2,147, with almost all main sectors trading higher. The Nasdaq composite rose 19 points, or 0.4 percent, to 5,261.

Later Wednesday the Federal Reserve will release its latest decision on interest rates. Some analysts thought the central bank would take further steps to bolster economic growth.

“I think in the long term, that should work to weaken the yen, because it promises that they will just keep trying and trying”, he added.

The dollar was down 1% against the yen to ¥100.7, its lowest level since August 26.

Crude oil prices rose 2.5 percent in midday Wednesday, sending energy stocks higher.

U.S. crude rose 2.29 per cent after data showed a bigger-than-expected draw in inventories. Brent crude futures settled up 95 cents, or 2 per cent, at $US46.83 per barrel. Wall Street rose today, helped by gains in technology and energy stocks, ahead of the Federal Reserve’s decision later in the day.

ADOBE JUMPS: Software maker Adobe Systems climbed after it raised its forecasts for the year. Premier Investments, Brickworks and Washington H. Soul Pattinson report full year results, while Suncorp Group will hold its annual general meeting. Its stock climbed $6.62, or 6.6 percent, to $107.24.

FedEx rose 6.5 per cent to US$173.30 after the package delivery company’s quarterly profit rose more than expected. The stock rose $9.15, or 5.6 percent, to $172. Homebuilders had slumped Tuesday after the USA government said construction of new homes slowed down in August.

Microsoft was the top influence on the S&P and the Nasdaq, rising 1.2 per cent after announcing a US$40 billion (RM165.4 billion) share buyback programme. Its shares rose 1.3 per cent to $10.11. Eastern Time (http://www.marketwatch.com/story/what-time-does-the-fed-interest-rate-decision-come-out-2016-09-20), followed by a news conference with Chairwoman Janet Yellen.

BONDS: Bond prices changed course and moved higher.

U.S. stocks were also supported by the Bank of Japan’s surprise decision to adopt a “yield curve control” under which it will buy long-term government bonds to keep 10-year bond yields at current levels around zero per cent. The euro dipped to $1.1151 from $1.1157.

OVERSEAS: Germany’s DAX rose 0.7 percent and the FTSE 100 of Britain added 0.2 percent. Tokyo’s Nikkei 225 reversed an early loss and closed 1.9 percent higher.