EU markets opened positively today after the FOMC took a dovish tone indicating that they would reduce the number of interest rate hikes this year. The Fed held interest rates steady on Wednesday and indicated that moderate U.S. economic growth and “strong job gains” would allow it to tighten policy this year, with fresh projections indicating that policymakers expected two quarter-point hikes by the year’s end, half the number seen in December.
The FTSE is back above 6200 this year, and opened 0.7% higher. The Dax is above 10,000 again this year and opened 0.4% higher.
In Asia stocks gained across the board as risk on revived after the FED reduced the number of interest rate hikes expected this year, while the dollar nursed substantial losses. The Nikkei index ended 0.2% lower at 16,936.38.
In Currency Markets the dollar was under pressure in Asian trading after declining sharply following the Fed’s decision to halve its outlook for U.S. interest rate increases to two from four by the end of this year. Dollar/yen fell 0.3% to 112.18 yen after earlier falling as low as 111.94. EUR/USD was up slightly to $1.1226, after the Fed helped propel it to a one-month high of $1.1244 overnight. The pound fell down about 0.1% to $1.4234.
Oil futures extended strong gains after continuing to gather support after the world’s biggest suppliers firmed up plans to meet to discuss an output freeze.Brent crude rose 38 cents to $40.71, after finishing up 4.1%, at $40.33 a barrel on Wednesday.
In US markets the S&P 500 closed at its highest level of the year after the U.S. Federal Reserve left interest rates untouched and signaled fewer rate hikes in coming months. The Dow Jones industrial average closed up 0.43%, to 17,325.76. The S&P 500 had gained 0.56%, to 2,027.22 Peabody Energy Corp (NYSE:BTU) fell 45.4% after the company said in a regulatory filing it may have to seek bankruptcy protection. LinkedIn (NYSE:LNKD) fell 4.9% at $109.81 and Gap (NYSE:GPS) fell 1.4% to $29.28 after Morgan Stanley (NYSE:MS) downgraded both stocks.
UK Company News:
Kier Group (LON:KIE) posted 1H results: Group revenue for the six months increased by 32% to £2.1B (December 2014: £1.6B) and the Group’s underlying operating profit for the period was £57.1M (December 2014: £44.8M), up 27% following the acquisition of Mouchel and strong growth in key markets. Reported profit before tax of £18.0M (December 2014: £27.8M). The Board is pleased to announce an interim dividend of 21.5p (2014: 19.2p), up 12%.
Spire Healthcare Group (LON:SPI) reported FY15 results: Overall revenue for the year grew 3.4% to £884.8M (2014: £856.0M) with growth reported across all payor groups. Adjusted EBITDA grew 2.2% to £160.1M (2014: £156.7M). Adjusted basic EPS of 18.3p per share (2014: 17.9p). Final dividend proposed of 2.4p per share payable on 28 June 2016 (2014: 1.8p). Total dividend paid or proposed for 2015 of 3.7p per share (2014: 1.8p).
Ted Baker (LON:TED) unveiled FY16 results: Group revenue increased by 17.7% (17.0% in constant currency) to £456.2M (2015: £387.6M), profit before tax increased by 20.3% to £58.7M (2015: £48.8M). The Board is recommending a final dividend of 34.6p per share (2015: 29.0p), making a total for the year of 47.8p per share (2015: 40.3p per share), an increase of 18.6% on the prior period.
Economic Data Releases
EC 11:00: Jan Trade Balance SA, exp.: 19.5B
EC 11:00: Jan Trade Balance NSA, exp.: 10B
EC 11:00: Feb CPI MoM, exp.: 0.1%
UK 13:00: BoE Bank Rate, exp.: 0.5%
UK 13:00: Mar BoE Asset purchase target, exp.: 375B
US 13:30: 4Q Current Account Balance, exp.: -$118B
US 13:30: Mar Philadelphia Fed Business Outlook, exp.: -1.5
US 13:30: 03/12 Initial Jobless Claims, exp.: 268K
US 13:30: 03/05 Continuing Claims, exp.: 2235K
US 15:00: Jan JOLTS Job Openings, exp.: 5500
US 15:00: Feb Leading Idx, exp.: 0.2%