Just as the US Federal Reserve announced an emergency rate cut over after fears of the <a href="https://www.wionews.com/world/coronavirus-spreads-rapidly-outside-china-as-us-reports-6-deaths-283972">coronavirus</a> swept the Wall Street stocks, US President Donald Trump the US regulator must further ease rates.

"The Federal Reserve is cutting but must further ease and, most importantly, come into line with other countries/competitors," Trump said in a tweet, adding,"We are not playing on a level field. Not fair to USA. It is finally time for the Federal Reserve to lead."

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The Federal Reserve is cutting but must further ease and, most importantly, come into line with other countries/competitors. We are not playing on a level field. Not fair to USA. It is finally time for the Federal Reserve to LEAD. More easing and cutting!
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"More easing and cutting," Trump told&nbsp;the US Federal Reserve.

<a href="https://www.wionews.com/world/united-states-has-43-domestic-cases-of-coronavirus-mike-pence-283849">Also Read: United States has 43 domestic cases of coronavirus, says Mike Pence</a>

Federal Reserve chair Jerome Powell, however, said that that the rate cut would provide "meaningful boost to the economy".

The US Federal Reserve had slashed its key interest rate by a half point to a range of 1.0-1.25. &nbsp;&nbsp;

The move came after the group of seven finance ministers and central bankers pledged to take action using "all appropriate policy tools" to respond to the virus.

"G7 finance ministers are ready to take actions, including fiscal measures where appropriate, to aid in the response to the virus and support the economy during this phase," it said.

The Wall Street stocks continued to bleed even after the rate cut announcement after rallying initially. &nbsp;The Dow Jones Industrial Average stood at 26,159.67, down nearly 550 points or 2.0 per cent.

The broad-based S&amp;P 500 slid 1.8 per cent to 3,034.00, while the tech-rich Nasdaq Composite Index shed 1.6 per cent to 8,805.92.

Just as the US Federal Reserve announced an emergency rate cut over after fears of the coronavirus swept the Wall Street stocks, US President Donald Trump the US regulator must further ease rates.

Just as the US Federal Reserve announced an emergency rate cut over after fears of the coronavirus swept the Wall Street stocks, US President Donald Trump the US regulator must further ease rates. "The Federal Reserve is cutting but must further ease and, most importantly, come into line with other countries/competitors," Trump said in a tweet, adding,"We are not playing on a level field. Not fair to USA. It is finally time for the Federal Reserve to lead." The Federal Reserve is cutting but must further ease and, most importantly, come into line with other countries/competitors. We are not playing on a level field. Not fair to USA. It is finally time for the Federal Reserve to LEAD. More easing and cutting! — Donald J. Trump (@realDonaldTrump) March 3, 2020 × "More easing and cutting," Trump told the US Federal Reserve. Also Read: United States has 43 domestic cases of coronavirus, says Mike Pence Federal Reserve chair Jerome Powell, however, said that that the rate cut would provide "meaningful boost to the economy". The US Federal Reserve had slashed its key interest rate by a half point to a range of 1.0-1.25. The move came after the group of seven finance ministers and central bankers pledged to take action using "all appropriate policy tools" to respond to the virus. "G7 finance ministers are ready to take actions, including fiscal measures where appropriate, to aid in the response to the virus and support the economy during this phase," it said. The Wall Street stocks continued to bleed even after the rate cut announcement after rallying initially. The Dow Jones Industrial Average stood at 26,159.67, down nearly 550 points or 2.0 per cent. The broad-based S&P 500 slid 1.8 per cent to 3,034.00, while the tech-rich Nasdaq Composite Index shed 1.6 per cent to 8,805.92.

Federal Reserve must further ease rates, we are not playing on a level field

Gold rose on Wednesday, propped up by lingering concerns over the <a href="https://www.wionews.com/business-economy/global-stocks-slide-to-two-week-low-on-china-virus-fears-safe-havens-gain-277082">economic impact of a coronavirus outbreak</a> in China, while investors awaited a policy decision from the US Federal Reserve later in the day.

Spot gold was up 0.3 per cent at $1,571.07 an ounce by 1125 GMT, <a href="https://www.wionews.com/business-economy/equities-and-oil-tank-plunge-as-deadly-coronavirus-triggers-panic-276900">having fallen</a> about 1 per cent in the previous session after positive US economic data drove recovery inequities. The US gold futures were little changed at $1,570.60 an ounce.

"The coronavirus will definitely have some impact on the Chinese economy and that will <a href="https://www.wionews.com/business-economy/oil-rout-extends-to-sixth-day-as-china-virus-death-toll-rises-277073">mostly affect the country's currency</a>, but an impulsive bull trend in gold is not expected yet," said Bernard Sin, group head of trading at MKS.

Safe-haven gold held aloft despite signs of stabilisation in <a href="https://www.wionews.com/business-economy/oil-slips-to-62-heads-for-weekly-loss-on-china-virus-concerns-276358">global stock markets</a> as equities investors tried to look past China's coronavirus outbreak, encouraged by better-than-expected company earnings.

While <a href="https://www.wionews.com/business-economy/barclays-sees-2-per-barrel-impact-to-oil-prices-as-virus-fears-threaten-demand-277075">rising stocks</a> are capping gold's gains, it is still being supported by other factors such as uncertainty around US President Donald Trump's impeachment and tensions in the Middle East, said Quantitative Commodity Research analyst Peter Fertig.

Also Read:&nbsp;<a href="https://www.wionews.com/business-economy/who-tempers-virus-fears-gold-eases-on-improved-risk-appetite-276399">Gold prices ease after WHO tempers coronavirus fears</a>

Risk aversion has not completely lifted, however. With the number of coronavirus fatalities now at 132 and 6,000 cases reported worldwide, there are fears the outbreak could inflict damage on Chinese growth. 
If there is an escalation, gold could reach $1,600, Jeffrey Halley, senior market analyst at OANDA, said in a note.

Investors are now waiting for the Fed's monetary policy statement at 1900 GMT. Possibly of greatest interest would be what if anything Fed Chair Jerome Powell has to say about the high Treasury purchases the Fed has been making since October to inject more liquidity into the money market, Commerzbank said in a note.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion. "The main driver for gold this year will be strategic inflows, as it will continue to be viewed as an attractive diversifier for investor portfolios in an environment where rates remain low," UBS strategist Joni Teves said.

Elsewhere, palladium fell 0.7 per cent to $2,272.77 an ounce, while platinum was up 0.7 per cent at $992.45. Palladium will cost on average more than twice as much as platinum this year, but that premium will narrow in 2021. Silver rose 0.5 per cent 
&nbsp;to $17.51, having earlier dipped to its lowest since December 23 at $17.35. 
&nbsp;

Gold rose on Wednesday, propped up by lingering concerns over the economic impact of a coronavirus outbreak in China, while investors awaited a policy decision from the US Federal Reserve later in the day.

Gold rose on Wednesday, propped up by lingering concerns over the economic impact of a coronavirus outbreak in China, while investors awaited a policy decision from the US Federal Reserve later in the day. Spot gold was up 0.3 per cent at $1,571.07 an ounce by 1125 GMT, having fallen about 1 per cent in the previous session after positive US economic data drove recovery inequities. The US gold futures were little changed at $1,570.60 an ounce. "The coronavirus will definitely have some impact on the Chinese economy and that will mostly affect the country's currency, but an impulsive bull trend in gold is not expected yet," said Bernard Sin, group head of trading at MKS. Safe-haven gold held aloft despite signs of stabilisation in global stock markets as equities investors tried to look past China's coronavirus outbreak, encouraged by better-than-expected company earnings. While rising stocks are capping gold's gains, it is still being supported by other factors such as uncertainty around US President Donald Trump's impeachment and tensions in the Middle East, said Quantitative Commodity Research analyst Peter Fertig. Also Read: Gold prices ease after WHO tempers coronavirus fears Risk aversion has not completely lifted, however. With the number of coronavirus fatalities now at 132 and 6,000 cases reported worldwide, there are fears the outbreak could inflict damage on Chinese growth. If there is an escalation, gold could reach $1,600, Jeffrey Halley, senior market analyst at OANDA, said in a note. Investors are now waiting for the Fed's monetary policy statement at 1900 GMT. Possibly of greatest interest would be what if anything Fed Chair Jerome Powell has to say about the high Treasury purchases the Fed has been making since October to inject more liquidity into the money market, Commerzbank said in a note. Lower interest rates reduce the opportunity cost of holding non-yielding bullion. "The main driver for gold this year will be strategic inflows, as it will continue to be viewed as an attractive diversifier for investor portfolios in an environment where rates remain low," UBS strategist Joni Teves said. Elsewhere, palladium fell 0.7 per cent to $2,272.77 an ounce, while platinum was up 0.7 per cent at $992.45. Palladium will cost on average more than twice as much as platinum this year, but that premium will narrow in 2021. Silver rose 0.5 per cent to $17.51, having earlier dipped to its lowest since December 23 at $17.35.

Investors await signal from the US Federal Reserve, virus concerns felt across the world

The output of US industry fell 1 per cent in December last year compared to the same month of 2018, driven by drops in a manufacturing sector impacted by bitter trade wars, the Federal Reserve reported Friday.

American manufacturing, which has been in recession for months, saw production fall 1.3 per cent in the final month of 2019 compared to a year earlier, the Fed said.

<a href="https://www.wionews.com/world/key-elements-of-the-us-china-trade-deal-a-pact-to-pause-the-economic-conflict-274516">Also Read: Key elements of the US-China trade deal - A pact to pause the economic conflict</a>

Petroleum and coal production which has seen strong gains in some months, including December, was 1.2 per cent lower than a year ago, according to the report.

Total output in December dipped 0.3 per cent compared to November, but that was skewed by a large drop-off in utilities due to unseasonably warm weather last month, which came after colder than usual temperatures in November.

Manufacturing gained just 0.2 per cent "despite a decrease of 4.6 per cent for motor vehicles and parts," the Fed said.

"Excluding the motor vehicle sector, factory output rose 0.5 per cent."

Mining output in the month rose 1.3 per cent and is up 1.4 per cent year-over-year, with most of the gains due to oil and gas extraction.

Meanwhile, industrial capacity in use fell to 77 per cent, the lowest since September 2017, and well below the average of the last five decades. 
&nbsp;

The output of US industry fell 1 per cent in December last year compared to the same month of 2018, driven by drops in a manufacturing sector impacted by bitter trade wars, the Federal Reserve reported Friday.

The output of US industry fell 1 per cent in December last year compared to the same month of 2018, driven by drops in a manufacturing sector impacted by bitter trade wars, the Federal Reserve reported Friday. American manufacturing, which has been in recession for months, saw production fall 1.3 per cent in the final month of 2019 compared to a year earlier, the Fed said. Also Read: Key elements of the US-China trade deal - A pact to pause the economic conflict Petroleum and coal production which has seen strong gains in some months, including December, was 1.2 per cent lower than a year ago, according to the report. Total output in December dipped 0.3 per cent compared to November, but that was skewed by a large drop-off in utilities due to unseasonably warm weather last month, which came after colder than usual temperatures in November. Manufacturing gained just 0.2 per cent "despite a decrease of 4.6 per cent for motor vehicles and parts," the Fed said. "Excluding the motor vehicle sector, factory output rose 0.5 per cent." Mining output in the month rose 1.3 per cent and is up 1.4 per cent year-over-year, with most of the gains due to oil and gas extraction. Meanwhile, industrial capacity in use fell to 77 per cent, the lowest since September 2017, and well below the average of the last five decades.

US industrial output fell 1% in December last year compared to 2018: Federal Reserve

The&nbsp;Bank&nbsp;of&nbsp;Japan&nbsp;held&nbsp;fire&nbsp;on Thursday but suggested it could&nbsp;cut&nbsp;rates in the&nbsp;future, reflecting its fears that global risks could weigh on the country's fragile recovery.

The announcement came just hours after the US <a href="https://www.wionews.com/world/trump-again-attacks-federal-reserve-says-central-bank-derelict-in-its-duties-258005">Federal Reserve</a>&nbsp;cut&nbsp;its benchmark interest&nbsp;rate&nbsp;for the third straight time as it gauges economic risks.

In its so-called "forward guidance"&nbsp;a signal the central&nbsp;bank&nbsp;gives to the market on its&nbsp;future&nbsp;policy decisions&nbsp;the BoJ said it expects rates "to remain at their present or lower levels."

Previously it had not made reference to the possibility of lower levels, saying instead it expected to keep "current ultra-low rates for an extended period of time, at least until the spring of 2020".

Thursday's announcement dropped the reference to that timeframe, hinting a change could come sooner.

The Japanese central&nbsp;bank&nbsp;warned that a pick-up in the global economy is likely to be delayed "mainly due to the intensified <a href="https://www.wionews.com/world/united-states-wants-china-trade-deal-in-same-time-frame-despite-apec-summit-cancellation-258895">US-China trade friction</a> as well as slowdowns" in emerging economies including China.

"Japan's economy is expected to grow temporarily at a somewhat slower pace than its potential" reflecting weak exports and the sales tax hike that came into effect on October 1, it said.

The&nbsp;Bank&nbsp;also revised down its inflation and growth forecasts for the world's third-largest economy.

The central&nbsp;bank&nbsp;said it expected prices to rise 0.7 per cent in the year to March 2020, down from a previous forecast of 1.0 per cent, and well short of its years-long target of two per cent.

It also revised down its forecast for the following year to 1.1 per cent from 1.3 per cent and downgraded its projection for the year to March 2022 from 1.6 per cent to 1.5 per cent.

The BoJ has consistently fallen short of hitting the two per cent target it considers key to turbocharging the stuttering economy, despite a barrage of stimulus and monetary easing packages.&nbsp;

Bank&nbsp;policymakers have argued that prolonged periods of low growth and inflation have created a "deflation mindset" that continues to weigh on the national economy.

In a statement, it said there had been "no further increase in the possibility that the momentum towards achieving the price stability would be lost".

But it warned at the same time that "it was necessary to continue to pay close attention to the possibility".

The central&nbsp;bank&nbsp;also slightly lowered its economic growth forecast, citing "the delay in the timing of a pick-up in the growth pace of overseas economies".

It&nbsp;now&nbsp;projects&nbsp;Japan's economy will grow 0.6 per cent in the year to March, 0.7 per cent for the following year and 1.0 per cent for the year to March 22.

&nbsp;

The Bank of Japan held fire on Thursday but suggested it could cut rates in the future, reflecting its fears that global risks could weigh on the country's fragile recovery.

The Bank of Japan held fire on Thursday but suggested it could cut rates in the future, reflecting its fears that global risks could weigh on the country's fragile recovery. The announcement came just hours after the US Federal Reserve cut its benchmark interest rate for the third straight time as it gauges economic risks. In its so-called "forward guidance" a signal the central bank gives to the market on its future policy decisions the BoJ said it expects rates "to remain at their present or lower levels." Previously it had not made reference to the possibility of lower levels, saying instead it expected to keep "current ultra-low rates for an extended period of time, at least until the spring of 2020". Thursday's announcement dropped the reference to that timeframe, hinting a change could come sooner. The Japanese central bank warned that a pick-up in the global economy is likely to be delayed "mainly due to the intensified US-China trade friction as well as slowdowns" in emerging economies including China. "Japan's economy is expected to grow temporarily at a somewhat slower pace than its potential" reflecting weak exports and the sales tax hike that came into effect on October 1, it said. The Bank also revised down its inflation and growth forecasts for the world's third-largest economy. The central bank said it expected prices to rise 0.7 per cent in the year to March 2020, down from a previous forecast of 1.0 per cent, and well short of its years-long target of two per cent. It also revised down its forecast for the following year to 1.1 per cent from 1.3 per cent and downgraded its projection for the year to March 2022 from 1.6 per cent to 1.5 per cent. The BoJ has consistently fallen short of hitting the two per cent target it considers key to turbocharging the stuttering economy, despite a barrage of stimulus and monetary easing packages. Bank policymakers have argued that prolonged periods of low growth and inflation have created a "deflation mindset" that continues to weigh on the national economy. In a statement, it said there had been "no further increase in the possibility that the momentum towards achieving the price stability would be lost". But it warned at the same time that "it was necessary to continue to pay close attention to the possibility". The central bank also slightly lowered its economic growth forecast, citing "the delay in the timing of a pick-up in the growth pace of overseas economies". It now projects Japan's economy will grow 0.6 per cent in the year to March, 0.7 per cent for the following year and 1.0 per cent for the year to March 22.

Bank of Japan suggests future rate cut, but holds fire for now

<a href="https://www.wionews.com/business-economy/global-markets-asian-shares-yuan-off-to-calm-start-focus-on-china-252723">Asian currencies strengthened</a> against the dollar on Friday, with South Korea's won leading the pack, as bets increased that the US Federal Reserve would cut rates further after a host of weak data deepened fears of a slowdown.

The market's focus now shifts to a key US&nbsp;jobs report due later in the day, and any signs of weakness in the print will boost rate-cut expectations and pressure the greenback.

"Slightly lower dollar, some adjustments in market positioning ahead of the weekend and expectations of Fed rate cuts are supporting Asian currencies," said Irene Cheung, a senior strategist for Asia at ANZ Banking Group (Singapore).

"With markets already fully loaded for an October FOMC (Federal Open Market Committee) rate cut, it may require an outsized positive surprise from the NFP (non-farm payroll) numbers to shake out the very short-term dollar bears," OCBC said in a note.

Thailand's baht, Asia's best-performing currency so far this year, added 0.3 per cent&nbsp;for the day and was set to close the week 0.5 per cent&nbsp;higher.

The Philippine peso&nbsp;was 0.2 per cent&nbsp;higher as investors shrugged off data showing September inflation came in at its slowest in more than 3 years.

Malaysia's ringgit&nbsp;cut earlier gains to trade slightly higher after a surprise fall in August exports.

India's rupee&nbsp;gained marginally, showing little reaction to a 25 basis point rate cut that was in line with expectations.

The Korean won outperformed Asian peers to notch up a 0.8 per cent&nbsp;gain, after having declined for three out of four sessions this week.

Japanese Prime Minister Shinzo Abe on Friday maintained an offer to talk to North Korea's leader even though <a href="https://www.wionews.com/world/north-korea-launches-missiles-ahead-of-nuclear-talks-253157">missile launches by the country</a> earlier this week had upped the risk ante in the region and pressured the won.

A bitter feud with Japan over history, trade and territory has added to the fallout from the US-Sino trade war to pull down the trade-sensitive won, making it Asia's worst-performing currency so far this year.

The unit was set to close the week 0.5 per cent&nbsp;stronger.

Asian currencies strengthened against the dollar on Friday, with South Korea's won leading the pack, as bets increased that the US Federal Reserve would cut rates further after a host of weak data deepened fears of a slowdown.

Asian currencies strengthened against the dollar on Friday, with South Korea's won leading the pack, as bets increased that the US Federal Reserve would cut rates further after a host of weak data deepened fears of a slowdown. The market's focus now shifts to a key US jobs report due later in the day, and any signs of weakness in the print will boost rate-cut expectations and pressure the greenback. "Slightly lower dollar, some adjustments in market positioning ahead of the weekend and expectations of Fed rate cuts are supporting Asian currencies," said Irene Cheung, a senior strategist for Asia at ANZ Banking Group (Singapore). "With markets already fully loaded for an October FOMC (Federal Open Market Committee) rate cut, it may require an outsized positive surprise from the NFP (non-farm payroll) numbers to shake out the very short-term dollar bears," OCBC said in a note. Thailand's baht, Asia's best-performing currency so far this year, added 0.3 per cent for the day and was set to close the week 0.5 per cent higher. The Philippine peso was 0.2 per cent higher as investors shrugged off data showing September inflation came in at its slowest in more than 3 years. Malaysia's ringgit cut earlier gains to trade slightly higher after a surprise fall in August exports. India's rupee gained marginally, showing little reaction to a 25 basis point rate cut that was in line with expectations. The Korean won outperformed Asian peers to notch up a 0.8 per cent gain, after having declined for three out of four sessions this week. Japanese Prime Minister Shinzo Abe on Friday maintained an offer to talk to North Korea's leader even though missile launches by the country earlier this week had upped the risk ante in the region and pressured the won. A bitter feud with Japan over history, trade and territory has added to the fallout from the US-Sino trade war to pull down the trade-sensitive won, making it Asia's worst-performing currency so far this year. The unit was set to close the week 0.5 per cent stronger.

Asian currencies rise as markets 'fully loaded' for Federal rate cut

Asian shares turned lower on Thursday after the US&nbsp;Federal Reserve cut interest rates as expected but signalled a higher bar to further policy easings.

Treasury yields rose broadly and the curve flattened as Fed Chairman Jerome Powell took a cautious approach to any further reductions in borrowing costs, while division among central bankers has increased uncertainty over how much further rates might fall.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.36 per cent.

Hong Kong shares shed 0.96 per cent, but Japan's Nikkei rose 1.01 per cent.

The yen rose from a seven-week low versus the dollar and held onto those gains after the Bank of Japan kept policy on hold, as expected, but signalled it could ease next month.

Central banks around the world have been loosening policy to counter the risks of low inflation and recession. Easier monetary policy has generally supported equities.

However, some analysts argue that a bond market rally has gone too far, saying yields have fallen too fast and curves flattened too much.

Others are worried about the growing amount of sovereign debt with negative yields.

"This is a small positive for share prices as long as there is no recession," said Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors in Sydney.

"The only problem is a 25 basis-point cut was already expected, and the comments and dot-plot forecasts were not as dovish as the market hoped. I think the Fed will have to cut again. There are still some risks from the yield curve."

US&nbsp;stock futures fell 0.23 per cent in Asia on Thursday. The S&amp;P 500 reversed losses to end 0.03 per cent higher after Powell said he did not see an imminent recession or think the Fed will adopt negative rates.

The Fed cut interest rates for a second time this year to 1.75 per cent - 2.00 per cent in a 7-3 vote but signalled further cuts are unlikely as the labour market remains strong.

The rate cut was widely expected, but the split vote has raised some concern about predicting the future path of monetary policy.

So-called dot-plot forecasts from all 17 policymakers showed even broader disagreement, with seven expecting a third rate cut this year, five seeing the current rate cut as the last for 2019, and five who appeared to have been against even Wednesday's move.

The yield on benchmark 10-year Treasury notes rose to 1.8013 per cent, while the two-year yield rose to 1.7703 per cent.

The spread between two- and 10-year Treasury yields, the most commonly used measure of the yield curve, was near the lowest since September&nbsp;9.

The curve inverted on August&nbsp;14 for the first time since 2007 when long-term yields traded below short-term yields, a widely accepted indicator of a coming recession.

The Australian dollar fell 0.5 per cent to $0.6793 after data showed the nation's jobless rate rose slightly to 5.3 per cent in August, bolstering expectations for the central bank to cut rates.

The yen rose around 0.3 per cent to 108.14 per dollar.

The BOJ maintained its pledge to guide short-term interest rates at minus 0.1 per cent and the 10-year government bond yield around 0 per cent.

Investors will closely watch BOJ Governor Haruhiko Kuroda's post-decision press conference later on Thursday to gauge how he assesses risks to Japan's economic outlook.

The US&nbsp;crude futures rose 0.24 per cent to $58.25 per barrel.

Oil markets have stabilised after attacks on Saudi Arabia over the weekend triggered a supply shock and sent prices soaring, but the volatility is still a risk as Middle East tensions remain high.

Washington has blamed Iran for the attacks, a charge which Tehran denies.

The US&nbsp;Secretary of State Mike Pompeo has said the strike was "an act of war."

Sterling traded at 88.50 pence per euro, near its strongest level since May 30. The pound was little changed at $1.2467.

Investors are awaiting a Bank of England policy meeting later Thursday. The BOE is expected to keep rates unchanged, but uncertainty about how the UK will exit from the European Union has complicated the outlook for monetary policy.

Asian shares turned lower on Thursday after the US Federal Reserve cut interest rates as expected but signalled a higher bar to further policy easings. Treasury yields rose broadly and the curve flattened as Fed Chairman Jerome Powell took a cautious approach to any further reductions in borrowing costs, while division among central bankers has increased uncertainty over how much further rates might fall.

Asian shares turned lower on Thursday after the US Federal Reserve cut interest rates as expected but signalled a higher bar to further policy easings. Treasury yields rose broadly and the curve flattened as Fed Chairman Jerome Powell took a cautious approach to any further reductions in borrowing costs, while division among central bankers has increased uncertainty over how much further rates might fall. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.36 per cent. Hong Kong shares shed 0.96 per cent, but Japan's Nikkei rose 1.01 per cent. The yen rose from a seven-week low versus the dollar and held onto those gains after the Bank of Japan kept policy on hold, as expected, but signalled it could ease next month. Central banks around the world have been loosening policy to counter the risks of low inflation and recession. Easier monetary policy has generally supported equities. However, some analysts argue that a bond market rally has gone too far, saying yields have fallen too fast and curves flattened too much. Others are worried about the growing amount of sovereign debt with negative yields. "This is a small positive for share prices as long as there is no recession," said Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors in Sydney. "The only problem is a 25 basis-point cut was already expected, and the comments and dot-plot forecasts were not as dovish as the market hoped. I think the Fed will have to cut again. There are still some risks from the yield curve." US stock futures fell 0.23 per cent in Asia on Thursday. The S&P 500 reversed losses to end 0.03 per cent higher after Powell said he did not see an imminent recession or think the Fed will adopt negative rates. The Fed cut interest rates for a second time this year to 1.75 per cent - 2.00 per cent in a 7-3 vote but signalled further cuts are unlikely as the labour market remains strong. The rate cut was widely expected, but the split vote has raised some concern about predicting the future path of monetary policy. So-called dot-plot forecasts from all 17 policymakers showed even broader disagreement, with seven expecting a third rate cut this year, five seeing the current rate cut as the last for 2019, and five who appeared to have been against even Wednesday's move. The yield on benchmark 10-year Treasury notes rose to 1.8013 per cent, while the two-year yield rose to 1.7703 per cent. The spread between two- and 10-year Treasury yields, the most commonly used measure of the yield curve, was near the lowest since September 9. The curve inverted on August 14 for the first time since 2007 when long-term yields traded below short-term yields, a widely accepted indicator of a coming recession. The Australian dollar fell 0.5 per cent to $0.6793 after data showed the nation's jobless rate rose slightly to 5.3 per cent in August, bolstering expectations for the central bank to cut rates. The yen rose around 0.3 per cent to 108.14 per dollar. The BOJ maintained its pledge to guide short-term interest rates at minus 0.1 per cent and the 10-year government bond yield around 0 per cent. Investors will closely watch BOJ Governor Haruhiko Kuroda's post-decision press conference later on Thursday to gauge how he assesses risks to Japan's economic outlook. The US crude futures rose 0.24 per cent to $58.25 per barrel. Oil markets have stabilised after attacks on Saudi Arabia over the weekend triggered a supply shock and sent prices soaring, but the volatility is still a risk as Middle East tensions remain high. Washington has blamed Iran for the attacks, a charge which Tehran denies. The US Secretary of State Mike Pompeo has said the strike was "an act of war." Sterling traded at 88.50 pence per euro, near its strongest level since May 30. The pound was little changed at $1.2467. Investors are awaiting a Bank of England policy meeting later Thursday. The BOE is expected to keep rates unchanged, but uncertainty about how the UK will exit from the European Union has complicated the outlook for monetary policy.

Asian shares turn lower on guarded Fed, yen rises after BOJ

The US Federal Reserve cut interest rates again on Wednesday to help sustain a record-long economic expansion but signalled a higher bar to further reductions in borrowing costs, eliciting a fast and sharp rebuke from President Donald Trump.

Describing the US economic outlook as "favourable," Fed Chair Jerome Powell said the rate cut was designed "to provide insurance against ongoing risks" including weak global growth and resurgent trade tensions.

"If the economy does turn down, then a more extensive sequence of rate cuts could be appropriate," Powell said in a news conference after the Fed announced it had lowered its benchmark overnight lending rate by a quarter of a percentage point to a range of 1.75% to 2.00%. It was the second Fed rate cut this year.

But, Powell said, "what we think we are facing here is a situation which can be addressed, which should be addressed, with moderate adjustments to the federal funds rate," noting that the US&nbsp;labour market was strong and inflation was likely to return to the Fed's 2% annual goal.

"We are going to be highly data-dependent ... We are not on a pre-set course, we are going to be making decisions meeting by meeting," Powell said, adding that the Fed would stop cutting rates "when we think we've done enough."

Trump blasted Powell, saying the central bank chief had "No 'guts,' no sense, no vision!"

"A terrible communicator," Trump tweeted before Powell had even begun his news conference.

Later, Trump told reporters during a trip to California: "I think it's fine. I think that frankly they should have acted faster."

Underscoring divisions within the central bank, the quarter-point rate cut on Wednesday drew dissents from three of the 10 voting policymakers.

Kansas City Fed President Esther George and Boston Fed President Eric Rosengren called for no rate cut, and St. Louis Fed President James Bullard wanted a bigger half-point rate cut.

Forecasts from all 17 policymakers released at the end of the meeting showed even broader disagreement, with seven expecting a third rate cut this year, five seeing the current rate cut as the last for 2019, and five who appeared to have been against even Wednesday's move.

Technical adjustments

The central bank also widened the gap between the interest it pays banks on excess reserves and the top of its policy rate range, a step taken to smooth out problems in money markets that prompted a market intervention by the New York Fed this week.

In a hint that the Fed may soon take bigger steps, Powell acknowledged that strains in funding markets had been bigger than expected, and he said the central bank may need to resume increases to the Fed's balance sheet "earlier" than previously thought.

US stocks, lower ahead of the statement, extended their losses and the US Treasury yield curve flattened. The 10-year Treasury note yield inched up to 1.79%.

The dollar gained ground against the euro and yen.

"Another rate cut from the Fed to try to shield the US economy from global headwinds," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington. "Today’s move was more of a hawkish easing in that the Fed’s median forecasts for rates suggested no more cuts this year, while some officials dissented."

Still, traders of interest rate futures were betting on one more quarter-point rate cut this year.

New projections showed Fed policymakers at the median expected rates to stay within the new range through 2020.

"There is a lot of uncertainty" around rate-path views and the economic outlook, Powell said.

There was little change in policymakers' projections for the economy, with GDP growth seen at a slightly higher 2.2% this year and the unemployment rate to be 3.7% through 2020. Inflation is projected to be 1.5% for the year, below the Fed's 2% target, before rising to 1.9% next year.

The Fed also cut rates in July, the first such move since 2008, as it responded to risks from Trump's trade war with China and other overseas developments.

The US Federal Reserve cut interest rates again on Wednesday to help sustain a record-long economic expansion but signalled a higher bar to further reductions in borrowing costs, eliciting a fast and sharp rebuke from President Donald Trump.

The US Federal Reserve cut interest rates again on Wednesday to help sustain a record-long economic expansion but signalled a higher bar to further reductions in borrowing costs, eliciting a fast and sharp rebuke from President Donald Trump. Describing the US economic outlook as "favourable," Fed Chair Jerome Powell said the rate cut was designed "to provide insurance against ongoing risks" including weak global growth and resurgent trade tensions. "If the economy does turn down, then a more extensive sequence of rate cuts could be appropriate," Powell said in a news conference after the Fed announced it had lowered its benchmark overnight lending rate by a quarter of a percentage point to a range of 1.75% to 2.00%. It was the second Fed rate cut this year. But, Powell said, "what we think we are facing here is a situation which can be addressed, which should be addressed, with moderate adjustments to the federal funds rate," noting that the US labour market was strong and inflation was likely to return to the Fed's 2% annual goal. "We are going to be highly data-dependent ... We are not on a pre-set course, we are going to be making decisions meeting by meeting," Powell said, adding that the Fed would stop cutting rates "when we think we've done enough." Trump blasted Powell, saying the central bank chief had "No 'guts,' no sense, no vision!" "A terrible communicator," Trump tweeted before Powell had even begun his news conference. Later, Trump told reporters during a trip to California: "I think it's fine. I think that frankly they should have acted faster." Underscoring divisions within the central bank, the quarter-point rate cut on Wednesday drew dissents from three of the 10 voting policymakers. Kansas City Fed President Esther George and Boston Fed President Eric Rosengren called for no rate cut, and St. Louis Fed President James Bullard wanted a bigger half-point rate cut. Forecasts from all 17 policymakers released at the end of the meeting showed even broader disagreement, with seven expecting a third rate cut this year, five seeing the current rate cut as the last for 2019, and five who appeared to have been against even Wednesday's move. Technical adjustments The central bank also widened the gap between the interest it pays banks on excess reserves and the top of its policy rate range, a step taken to smooth out problems in money markets that prompted a market intervention by the New York Fed this week. In a hint that the Fed may soon take bigger steps, Powell acknowledged that strains in funding markets had been bigger than expected, and he said the central bank may need to resume increases to the Fed's balance sheet "earlier" than previously thought. US stocks, lower ahead of the statement, extended their losses and the US Treasury yield curve flattened. The 10-year Treasury note yield inched up to 1.79%. The dollar gained ground against the euro and yen. "Another rate cut from the Fed to try to shield the US economy from global headwinds," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington. "Today’s move was more of a hawkish easing in that the Fed’s median forecasts for rates suggested no more cuts this year, while some officials dissented." Still, traders of interest rate futures were betting on one more quarter-point rate cut this year. New projections showed Fed policymakers at the median expected rates to stay within the new range through 2020. "There is a lot of uncertainty" around rate-path views and the economic outlook, Powell said. There was little change in policymakers' projections for the economy, with GDP growth seen at a slightly higher 2.2% this year and the unemployment rate to be 3.7% through 2020. Inflation is projected to be 1.5% for the year, below the Fed's 2% target, before rising to 1.9% next year. The Fed also cut rates in July, the first such move since 2008, as it responded to risks from Trump's trade war with China and other overseas developments.

US Federal Reserve cuts interest rates, signals holding pattern for now

Bogged down in the <a href="https://www.wionews.com/world/trade-deal-will-be-much-tougher-for-china-when-i-win-second-term-trump-247411">US-China trade war</a>, the US manufacturing sector stumbled and fell into contraction last month for the first time in three years, an industry survey showed Tuesday.

Anemic demand for US goods, with persistent drops in export orders, produced a "notable decrease" in business confidence, as indicators for production, employment and order backlogs all fell, according to the Institute for Supply Management.

ISM's nationwide manufacturing index fell unexpectedly to 49.1, ending 35 months of expansion and hitting the lowest level since January of 2016.

Economists had expected the index to hold about steady at 51.3. Any reading below 50 indicates contraction.

Timothy Fiore, chair of ISM's manufacturing survey, told reporters it was difficult to say when the current decline could reverse.

"I think the key here is for new demand to rise again and I can't predict that," he said.

Contractions in US manufacturing have not always preceded recessions in the wider economy but the latest ISM figures will no doubt raise fears of a downturn.

Fiore noted that, unlike prior manufacturing contractions, the index in this case had fallen for five straight months without interruption.

"I think this is much more definitive," he said.

The decline confirmed reporting from the US Federal Reserve according to which American manufacturing sector is now in recession after two straight quarters in the red.

The weaker-than-expected result will increase pressure on the central bank to cut interest rates later this month, as markets overwhelmingly expect it to do.

The news worsened a decline on Wall Street, with the benchmark Dow Jones Industrial Average down 1.4 percent near 1500 GMT.

Though President Donald Trump has championed the US manufacturing sector, it is now the weakest part of the American economy, suffering repeat shocks from the US-China trade war, which has raised prices and eaten into demand, and from a weakening global economy.

Ian Shepherdson of Pantheon Macroeconomics, which was not involved in producing the report, said the news was "grim."

"In short, we can find no good news here," he said in a note to clients, noting that the survey did not point to a general downturn "yet."

But "another couple of months of declines on this scale would leave the US facing an entirely unnecessary and self-inflicted recession," he wrote. 
&nbsp;

Bogged down in the US-China trade war, the US manufacturing sector stumbled and fell into contraction last month for the first time in three years, an industry survey showed Tuesday.

Bogged down in the US-China trade war, the US manufacturing sector stumbled and fell into contraction last month for the first time in three years, an industry survey showed Tuesday. Anemic demand for US goods, with persistent drops in export orders, produced a "notable decrease" in business confidence, as indicators for production, employment and order backlogs all fell, according to the Institute for Supply Management. ISM's nationwide manufacturing index fell unexpectedly to 49.1, ending 35 months of expansion and hitting the lowest level since January of 2016. Economists had expected the index to hold about steady at 51.3. Any reading below 50 indicates contraction. Timothy Fiore, chair of ISM's manufacturing survey, told reporters it was difficult to say when the current decline could reverse. "I think the key here is for new demand to rise again and I can't predict that," he said. Contractions in US manufacturing have not always preceded recessions in the wider economy but the latest ISM figures will no doubt raise fears of a downturn. Fiore noted that, unlike prior manufacturing contractions, the index in this case had fallen for five straight months without interruption. "I think this is much more definitive," he said. The decline confirmed reporting from the US Federal Reserve according to which American manufacturing sector is now in recession after two straight quarters in the red. The weaker-than-expected result will increase pressure on the central bank to cut interest rates later this month, as markets overwhelmingly expect it to do. The news worsened a decline on Wall Street, with the benchmark Dow Jones Industrial Average down 1.4 percent near 1500 GMT. Though President Donald Trump has championed the US manufacturing sector, it is now the weakest part of the American economy, suffering repeat shocks from the US-China trade war, which has raised prices and eaten into demand, and from a weakening global economy. Ian Shepherdson of Pantheon Macroeconomics, which was not involved in producing the report, said the news was "grim." "In short, we can find no good news here," he said in a note to clients, noting that the survey did not point to a general downturn "yet." But "another couple of months of declines on this scale would leave the US facing an entirely unnecessary and self-inflicted recession," he wrote.

US manufacturing contracts for first time in 3 years: Industry survey

The bulls staged a comeback during the second half of the equity trading session on Friday amid expectations that the government may soon announce steps to revive economic growth.

The BSE S&amp;P Sensex closed 228 points or 0.6 per cent higher at 36,701, while the Nifty 50 was up by 88 points or 0.8 per cent to 10,829.

Except for FMCG and private banks, all sectoral indices were in the green at the <a href="https://www.wionews.com/business-economy/equity-indices-open-in-green-sensex-nifty-edge-up-241658">National Stock Exchange.</a>&nbsp;

Nifty media gained by 4.1 per cent, metal by 3.4 per cent, PSU banks by 2 per cent and pharma by 1.4 per cent.

Among stocks, Zee Entertainment was up by 6.5 per cent to close at Rs 350.50 per share.&nbsp;

UPL gained by 6.1 per cent, Vedanta by 5.7 per cent, Yes Bank by 5.6 per cent and Bharat Petroleum Corporation by 5.2 per cent.

Heavyweight Reliance Industries gained by 2.36 per cent to close at Rs 1,275.95 per share.

The other prominent gainers were ONGC, Mahindra &amp; Mahindra, Grasim, Indian Oil Corporation and Coal India.

However, private lenders like IndusInd Bank, ICICI Bank, HDFC Bank, and Kotak Mahindra were among the losers.

ITC, Eicher Motors, Power Grid, and Hindustan Lever also shed gains marginally.

Meanwhile, Asian shares struggled to make headway as uncertainty continued over how much the US Federal Reserve will cut interest rates.

MSCI's broadest index of Asia-Pacific shares outside Japan was 0.1 per cent higher.

Japan's benchmark Nikkei added 0.4 per cent while Shanghai Composite Hong Kong's Hang Seng gained 0.5 per cent each

The bulls staged a comeback during the second half of the equity trading session on Friday amid expectations that the government may soon announce steps to revive economic growth.

The bulls staged a comeback during the second half of the equity trading session on Friday amid expectations that the government may soon announce steps to revive economic growth. The BSE S&P Sensex closed 228 points or 0.6 per cent higher at 36,701, while the Nifty 50 was up by 88 points or 0.8 per cent to 10,829. Except for FMCG and private banks, all sectoral indices were in the green at the National Stock Exchange. Nifty media gained by 4.1 per cent, metal by 3.4 per cent, PSU banks by 2 per cent and pharma by 1.4 per cent. Among stocks, Zee Entertainment was up by 6.5 per cent to close at Rs 350.50 per share. UPL gained by 6.1 per cent, Vedanta by 5.7 per cent, Yes Bank by 5.6 per cent and Bharat Petroleum Corporation by 5.2 per cent. Heavyweight Reliance Industries gained by 2.36 per cent to close at Rs 1,275.95 per share. The other prominent gainers were ONGC, Mahindra & Mahindra, Grasim, Indian Oil Corporation and Coal India. However, private lenders like IndusInd Bank, ICICI Bank, HDFC Bank, and Kotak Mahindra were among the losers. ITC, Eicher Motors, Power Grid, and Hindustan Lever also shed gains marginally. Meanwhile, Asian shares struggled to make headway as uncertainty continued over how much the US Federal Reserve will cut interest rates. MSCI's broadest index of Asia-Pacific shares outside Japan was 0.1 per cent higher. Japan's benchmark Nikkei added 0.4 per cent while Shanghai Composite Hong Kong's Hang Seng gained 0.5 per cent each

Sensex surges by 228 points on hopes on the stimulus package, metal stocks shine

US President Donald Trump said on Wednesday the US Federal Reserve must cut rates "bigger and faster" for the United States to be competitive against other countries.

"Our problem is a Federal Reserve that is too proud to admit their mistake of acting too fast and tightening too much (and that I was right!). They must Cut Rates bigger and faster, and stop their ridiculous quantitative tightening NOW," Trump said in a series of Twitter posts.

The Republican president has for months been calling on the Fed to lower interest rates to support the US economy.

His surprise move last week to impose new tariffs on Chinese imports has thrown the Federal Reserve another curveball that may force it to cut rates more than the central bank had hoped was necessary to protect the economy from trade-policy risks.

White House trade adviser Peter Navarro on Monday urged the Fed to cut key rates by another three-quarters of a point to a full point by the end of the year to bring U.S. rates in line with rates elsewhere.

US President Donald Trump said on Wednesday the US Federal Reserve must cut rates "bigger and faster" for the United States to be competitive against other countries.

US President Donald Trump said on Wednesday the US Federal Reserve must cut rates "bigger and faster" for the United States to be competitive against other countries. "Our problem is a Federal Reserve that is too proud to admit their mistake of acting too fast and tightening too much (and that I was right!). They must Cut Rates bigger and faster, and stop their ridiculous quantitative tightening NOW," Trump said in a series of Twitter posts. The Republican president has for months been calling on the Fed to lower interest rates to support the US economy. His surprise move last week to impose new tariffs on Chinese imports has thrown the Federal Reserve another curveball that may force it to cut rates more than the central bank had hoped was necessary to protect the economy from trade-policy risks. White House trade adviser Peter Navarro on Monday urged the Fed to cut key rates by another three-quarters of a point to a full point by the end of the year to bring U.S. rates in line with rates elsewhere.

US Federal Reserve must cut rates 'bigger and faster': US President Trump 

Investors continued to pump in money into bonds and shunned equities in the past week, Bank of America Merrill Lynch (BAML) said on Friday, amid worries of a corporate earnings recession and trade tensions across the world.

BAML said its global earnings per share (EPS) "growth model" suggested an earnings recession. The model forecasts a 7.5% drop in EPS in the next 12 months.

With all major central banks coming out with less-dovish guidance, in the week to July 31 investors played it safe by pouring $10.5 billion into bonds while pulling some $1.7 billion money out of equities.

The US was the only region to attract investors, who pumped $4.8 billion into equities, while European and Japan stocks had outflows. Money has flowed out of European equities in 70 of the past 73 weeks.

Global equities were roiled last week by central bank comments that fell-short of expectations. European markets took a sharp hit after the European Central Bank kept interest&nbsp;rates intact and its outlook on easing came in below market expectations.

The US Federal Reserve cut interest rates in line with market expectations on Wednesday but poured cold water on market expectations of a lengthy easing cycle sending global stocks lower.

Investors continued to pump in money into bonds and shunned equities in the past week, Bank of America Merrill Lynch (BAML) said on Friday, amid worries of a corporate earnings recession and trade tensions across the world.

Investors continued to pump in money into bonds and shunned equities in the past week, Bank of America Merrill Lynch (BAML) said on Friday, amid worries of a corporate earnings recession and trade tensions across the world. BAML said its global earnings per share (EPS) "growth model" suggested an earnings recession. The model forecasts a 7.5% drop in EPS in the next 12 months. With all major central banks coming out with less-dovish guidance, in the week to July 31 investors played it safe by pouring $10.5 billion into bonds while pulling some $1.7 billion money out of equities. The US was the only region to attract investors, who pumped $4.8 billion into equities, while European and Japan stocks had outflows. Money has flowed out of European equities in 70 of the past 73 weeks. Global equities were roiled last week by central bank comments that fell-short of expectations. European markets took a sharp hit after the European Central Bank kept interest rates intact and its outlook on easing came in below market expectations. The US Federal Reserve cut interest rates in line with market expectations on Wednesday but poured cold water on market expectations of a lengthy easing cycle sending global stocks lower.

Fears of earnings recession keep investors away from stocks: Bank of America Merrill Lynch

Indian shares edged higher on Tuesday, tracking broader Asia ahead of a widely expected rate cut by the US Federal Reserve.

The Fed begins its two-day policy meeting later in the day, at which it is widely expected to lower interest rates by 25 basis points. If implemented, it would be the central bank's first rate cut in a decade.

The broader NSE Nifty was up 0.32 per cent at 11,224.85 as of 0455 GMT, while the benchmark BSE Sensex rose 0.31per cent to 37,803.38.

"The positive open follows mildly positive US markets on Monday and largely positive Asian markets this morning," said Deepak Jasani, senior vice president at HDFC Securities.

"Some beaten-down stocks of Monday are seeing some bounce."

Banks and financials led the gains, with the Nifty Bank index and the Nifty Finance index rising 0.5 per cent each. ICICI Bank was among the top gainers with a rise of 1.2 per cent.

State Bank of India, the country's biggest lender, tightened lending terms for auto dealers as it sought to reduce its exposure to the crisis-ridden sector, Reuters reported on Monday.

The move, however, did not dampen investor sentiment on the sector. The Nifty Auto index was up 0.4 per cent, after it touched an over three-year low on Monday.

Sector heavyweights Maruti Suzuki and Tata Motors were up 0.5 per cent and 0.8 per cent, respectively.

Dr Reddy's Laboratories, which reported better-than-expected earnings on Monday, saw its stock rise slightly over 1 per cent. Cipla Ltd was up nearly 2 per cent.

Among losers, Indiabulls Housing Finance Ltd extended its fall from Monday after a lawmaker alleged embezzlement by the company to the tune of 1 trillion rupees.

Meanwhile, shares of Coffee Day Enterprises Ltd plunged 20 per cent, after the founder and largest shareholder in the company went missing under mysterious circumstances on Monday.

Indian shares edged higher on Tuesday, tracking broader Asia ahead of a widely expected rate cut by the US Federal Reserve. The Fed begins its two-day policy meeting later in the day, at which it is widely expected to lower interest rates by 25 basis points.

Indian shares edged higher on Tuesday, tracking broader Asia ahead of a widely expected rate cut by the US Federal Reserve. The Fed begins its two-day policy meeting later in the day, at which it is widely expected to lower interest rates by 25 basis points. If implemented, it would be the central bank's first rate cut in a decade. The broader NSE Nifty was up 0.32 per cent at 11,224.85 as of 0455 GMT, while the benchmark BSE Sensex rose 0.31per cent to 37,803.38. "The positive open follows mildly positive US markets on Monday and largely positive Asian markets this morning," said Deepak Jasani, senior vice president at HDFC Securities. "Some beaten-down stocks of Monday are seeing some bounce." Banks and financials led the gains, with the Nifty Bank index and the Nifty Finance index rising 0.5 per cent each. ICICI Bank was among the top gainers with a rise of 1.2 per cent. State Bank of India, the country's biggest lender, tightened lending terms for auto dealers as it sought to reduce its exposure to the crisis-ridden sector, Reuters reported on Monday. The move, however, did not dampen investor sentiment on the sector. The Nifty Auto index was up 0.4 per cent, after it touched an over three-year low on Monday. Sector heavyweights Maruti Suzuki and Tata Motors were up 0.5 per cent and 0.8 per cent, respectively. Dr Reddy's Laboratories, which reported better-than-expected earnings on Monday, saw its stock rise slightly over 1 per cent. Cipla Ltd was up nearly 2 per cent. Among losers, Indiabulls Housing Finance Ltd extended its fall from Monday after a lawmaker alleged embezzlement by the company to the tune of 1 trillion rupees. Meanwhile, shares of Coffee Day Enterprises Ltd plunged 20 per cent, after the founder and largest shareholder in the company went missing under mysterious circumstances on Monday.

Nifty, Sensex edge higher tracking broader Asia

<a href="https://www.wionews.com/business-%26-economy/gold-prices-slip-for-sixth-session-as-dollar-trades-near-1-year-high-153068">Gold prices</a> firmed on Tuesday ahead of a meeting of the <a href="https://www.wionews.com/business-economy/nasdaq-ends-at-record-high-dollar-falls-as-us-fed-signals-possible-rate-cut-234814">US Federal Reserve</a> where it is expected to signal how big an interest rate cut the world's biggest economy could take.

Spot gold was up 0.1 per cent to1,427.85 dollars per ounce as of 0954 GMT. US gold futures were up 0.6 per cent at1,428.30 dollars per ounce.

"The big question is what the tone of the Fed will be tomorrow. Interest rates are overwhelmingly likely to be cut. It's just a question of by how much," said Mitsubishi analyst Jonathan Butler.&nbsp;

"Gold is still at 6-year highs. Although it has been close to1,450 dollars recently, it seems to have found a level around1,425 dollars."

Investors awaited cues on the Fed's two-day monetary policy meeting beginning later in the session, which is expected to result in a 25-basis point cut in interest rates. If implemented, it would be the central bank's first rate cut in a decade.

The bank would be joining peers such as the European Central Bank in signalling the need for rate cuts. The <a href="https://www.wionews.com/business-economy/asia-stocks-higher-ahead-of-fed-pound-pressured-by-fresh-brexit-pain-239341">Bank of Japan</a> has also said it would ease "without hesitation" if the economy lost momentum in order to achieve its inflation target.

Gains in the dollar index, which touched a two-month high of 98.206 on the back of a weaker sterling, helped cap the rise in bullion.

"Liquidity is still thin as traders seem to be holding back before the Fed gives its views on monetary policy," said Benjamin Lu, an analyst at Phillip Futures, adding that a firm dollar was putting pressure on gold prices.&nbsp;

US-China trade negotiations, which begin in Shanghai on Tuesday, were also in the spotlight, although expectations for progress during the two-day meeting are low, with the markets hoping the two sides can at least detail commitments for goodwill gestures.&nbsp;

On the technical side, spot gold remains neutral in a range of 1,412-1,427 dollars per ounce, and an escape could suggest a direction, according to Reuters technical analyst Wang Tao.&nbsp;

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.83 per cent to 824.89 tonnes on Monday from Friday.

Among other precious metals, silver rose 0.2 per cent to16.49 dollars, while platinum edged 0.2 per cent higher to 877.29dollars.

Palladium dropped 0.5 per cent to1,545.31 dollars per ounce, after touching a near two-week high in the previous session.

Gold prices firmed on Tuesday ahead of a meeting of the US Federal Reserve where it is expected to signal how big an interest rate cut the world's biggest economy could take.

Gold prices firmed on Tuesday ahead of a meeting of the US Federal Reserve where it is expected to signal how big an interest rate cut the world's biggest economy could take. Spot gold was up 0.1 per cent to1,427.85 dollars per ounce as of 0954 GMT. US gold futures were up 0.6 per cent at1,428.30 dollars per ounce. "The big question is what the tone of the Fed will be tomorrow. Interest rates are overwhelmingly likely to be cut. It's just a question of by how much," said Mitsubishi analyst Jonathan Butler. "Gold is still at 6-year highs. Although it has been close to1,450 dollars recently, it seems to have found a level around1,425 dollars." Investors awaited cues on the Fed's two-day monetary policy meeting beginning later in the session, which is expected to result in a 25-basis point cut in interest rates. If implemented, it would be the central bank's first rate cut in a decade. The bank would be joining peers such as the European Central Bank in signalling the need for rate cuts. The Bank of Japan has also said it would ease "without hesitation" if the economy lost momentum in order to achieve its inflation target. Gains in the dollar index, which touched a two-month high of 98.206 on the back of a weaker sterling, helped cap the rise in bullion. "Liquidity is still thin as traders seem to be holding back before the Fed gives its views on monetary policy," said Benjamin Lu, an analyst at Phillip Futures, adding that a firm dollar was putting pressure on gold prices. US-China trade negotiations, which begin in Shanghai on Tuesday, were also in the spotlight, although expectations for progress during the two-day meeting are low, with the markets hoping the two sides can at least detail commitments for goodwill gestures. On the technical side, spot gold remains neutral in a range of 1,412-1,427 dollars per ounce, and an escape could suggest a direction, according to Reuters technical analyst Wang Tao. Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.83 per cent to 824.89 tonnes on Monday from Friday. Among other precious metals, silver rose 0.2 per cent to16.49 dollars, while platinum edged 0.2 per cent higher to 877.29dollars. Palladium dropped 0.5 per cent to1,545.31 dollars per ounce, after touching a near two-week high in the previous session.

Gold firms ahead of expected Federal interest rate cut

Oil&nbsp;prices rose on Friday as tensions spiked again in the Middle East&nbsp;after&nbsp;the United States said it had destroyed an&nbsp;Iranian&nbsp;drone&nbsp;in the Strait of Hormuz, a major chokepoint for global crude flows.

Benchmark crude prices were still on track for their biggest&nbsp;weekly&nbsp;decline in seven weeks, however, having&nbsp;fallen sharply earlier in the week on concerns over global&nbsp;oil&nbsp;demand amid slowing economic growth.

Brent crude futures were up 1.11 cents, or 1.78%, at $63.04 a barrel by 1037 GMT, having risen as high as $63.32. Brent fell 2.7% on Thursday, its fourth straight session of losses, and was&nbsp;set&nbsp;for a&nbsp;weekly&nbsp;drop of around 5%.

West Texas Intermediate crude futures were 81 cents, or 1.44%, higher at $56.11 per barrel&nbsp;after&nbsp;touching $56.36. They ended 2.6% lower in the previous session and were headed for a&nbsp;weekly&nbsp;decline of around 6%.

Indications that the&nbsp;US Federal Reserve will cut rates aggressively to support the economy were also behind Friday's gains, said Stephen Innes, managing partner at Vanguard Markets.

"The Fed backstop and the report of the&nbsp;US&nbsp;Navy&nbsp;shooting down an&nbsp;Iranian&nbsp;drone&nbsp;are providing a modicum of support for&nbsp;oil&nbsp;markets amidst a very bearish landscape," he said.

The United States said on Thursday that a&nbsp;US&nbsp;Navy&nbsp;ship had "destroyed" an&nbsp;Iranian&nbsp;drone&nbsp;in the Strait of Hormuz&nbsp;after&nbsp;the aircraft threatened the vessel, but Iran said it had no information about losing a&nbsp;drone.

Also on Thursday, two influential Federal Reserve officials sharpened the public case for acting to support the&nbsp;US economy, reviving bets the central bank may deliver a larger-than-expected cut this month.

Still, the longer-term outlook for&nbsp;oil&nbsp;has grown increasingly bearish.

The International Energy Agency (IEA) is reducing its 2019&nbsp;oil&nbsp;demand growth forecast to 1.1 million barrels per day (BPD) from 1.2 million BPD previously due to a slowing global economy amid a&nbsp;US-China trade spat, it's executive director said on Thursday.

The IEA may cut further if the global economy and especially China show further weakness, Fatih Birol told Reuters.

"Macro-economic concerns, uncertainty on trade discussions and increasing&nbsp;oil&nbsp;supply from the&nbsp;US continued to weigh on sentiments," said Warren Patterson, head of commodities at ING.

Bank of America Merrill Lynch said any start of&nbsp;US-Iran talks or a&nbsp;US-China trade deal would reduce volatility and anchor Brent&nbsp;oil&nbsp;prices in a $60-$67 per barrel range.

Oil prices rose on Friday as tensions spiked again in the Middle East after the United States said it had destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows.

Oil prices rose on Friday as tensions spiked again in the Middle East after the United States said it had destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows. Benchmark crude prices were still on track for their biggest weekly decline in seven weeks, however, having fallen sharply earlier in the week on concerns over global oil demand amid slowing economic growth. Brent crude futures were up 1.11 cents, or 1.78%, at $63.04 a barrel by 1037 GMT, having risen as high as $63.32. Brent fell 2.7% on Thursday, its fourth straight session of losses, and was set for a weekly drop of around 5%. West Texas Intermediate crude futures were 81 cents, or 1.44%, higher at $56.11 per barrel after touching $56.36. They ended 2.6% lower in the previous session and were headed for a weekly decline of around 6%. Indications that the US Federal Reserve will cut rates aggressively to support the economy were also behind Friday's gains, said Stephen Innes, managing partner at Vanguard Markets. "The Fed backstop and the report of the US Navy shooting down an Iranian drone are providing a modicum of support for oil markets amidst a very bearish landscape," he said. The United States said on Thursday that a US Navy ship had "destroyed" an Iranian drone in the Strait of Hormuz after the aircraft threatened the vessel, but Iran said it had no information about losing a drone. Also on Thursday, two influential Federal Reserve officials sharpened the public case for acting to support the US economy, reviving bets the central bank may deliver a larger-than-expected cut this month. Still, the longer-term outlook for oil has grown increasingly bearish. The International Energy Agency (IEA) is reducing its 2019 oil demand growth forecast to 1.1 million barrels per day (BPD) from 1.2 million BPD previously due to a slowing global economy amid a US-China trade spat, it's executive director said on Thursday. The IEA may cut further if the global economy and especially China show further weakness, Fatih Birol told Reuters. "Macro-economic concerns, uncertainty on trade discussions and increasing oil supply from the US continued to weigh on sentiments," said Warren Patterson, head of commodities at ING. Bank of America Merrill Lynch said any start of US-Iran talks or a US-China trade deal would reduce volatility and anchor Brent oil prices in a $60-$67 per barrel range.

Oil rises after US Navy downs Iranian drone; set for weekly fall

<a href="https://www.wionews.com/world/goldman-sachs-ditches-single-use-plastic-products-193983">Goldman Sachs Group Inc</a> reported a better-than-expected quarterly profit on Tuesday as the <a href="https://www.wionews.com/world/wall-street-notches-all-time-highs-as-rate-cut-hopes-lift-investor-spirits-235406">Wall Street investment bank</a> benefited from higher equity trading and an increase in lending to its wealthy clients and companies.

The bank, like its rivals, is facing several challenges in growing its revenue in the face of rising geopolitical uncertainties and concerns about the impact of future interest rate cuts by the US Federal Reserve.

Goldman is also shifting its business model away from a focus on trading to a more stable, consumer-focused revenue stream.

Revenue fell at three of its four major businesses, with the biggest declines in trading and investment management.

Institutional client revenue, which includes trading, slipped 3 per cent, while investment banking revenue was down 9 per cent. However, revenue from the bank's investing and lending business rose 16 per cent.

"Given the strength of our client franchise, we are well-positioned to benefit from a growing global economy," Chief Executive Officer David Solomon said in a statement.

While revenue slipped in the quarter, lower compensation expenses provided some relief. Total operating expenses were nearly flat at $6.12 billion.

The bank is aiming to generate $5 billion in new revenue by 2020, and is currently undergoing a front-to-back review of all its businesses started last October when Solomon took control as CEO.

While the final strategy is not expected until early next year, the bank has already made moves to expand its consumer division, by growing online bank Marcus and launching a credit card with Apple Inc. It also announced plans in May to acquire United Capital, a boutique wealth management firm.

The bank's net earnings applicable to common shareholders fell 6 per cent to $2.20 billion in the quarter ended June 30. Earnings per share fell to $5.81 from $5.98 a year earlier.

Total net revenue fell 2 per cent to $9.46 billion. Analysts had expected earnings of $4.89 per share and revenue of $8.83 billion, according to IBES estimate from Refinitiv.

Goldman's main rival Morgan Stanley is expected to report quarterly results later in the week.

Goldman Sachs Group Inc reported a better-than-expected quarterly profit on Tuesday as the Wall Street investment bank benefited from higher equity trading and an increase in lending to its wealthy clients and companies.

Goldman Sachs Group Inc reported a better-than-expected quarterly profit on Tuesday as the Wall Street investment bank benefited from higher equity trading and an increase in lending to its wealthy clients and companies. The bank, like its rivals, is facing several challenges in growing its revenue in the face of rising geopolitical uncertainties and concerns about the impact of future interest rate cuts by the US Federal Reserve. Goldman is also shifting its business model away from a focus on trading to a more stable, consumer-focused revenue stream. Revenue fell at three of its four major businesses, with the biggest declines in trading and investment management. Institutional client revenue, which includes trading, slipped 3 per cent, while investment banking revenue was down 9 per cent. However, revenue from the bank's investing and lending business rose 16 per cent. "Given the strength of our client franchise, we are well-positioned to benefit from a growing global economy," Chief Executive Officer David Solomon said in a statement. While revenue slipped in the quarter, lower compensation expenses provided some relief. Total operating expenses were nearly flat at $6.12 billion. The bank is aiming to generate $5 billion in new revenue by 2020, and is currently undergoing a front-to-back review of all its businesses started last October when Solomon took control as CEO. While the final strategy is not expected until early next year, the bank has already made moves to expand its consumer division, by growing online bank Marcus and launching a credit card with Apple Inc. It also announced plans in May to acquire United Capital, a boutique wealth management firm. The bank's net earnings applicable to common shareholders fell 6 per cent to $2.20 billion in the quarter ended June 30. Earnings per share fell to $5.81 from $5.98 a year earlier. Total net revenue fell 2 per cent to $9.46 billion. Analysts had expected earnings of $4.89 per share and revenue of $8.83 billion, according to IBES estimate from Refinitiv. Goldman's main rival Morgan Stanley is expected to report quarterly results later in the week.

Goldman Sachs profit beats expectations on equity trading, lending

Wall Street stocks cheered dovish testimony from Federal Reserve Chair Jerome Powell on Wednesday, lifting the Nasdaq to a fresh record while the prospect of looser monetary <a href="https://www.wionews.com/world/sp-500-hits-3000-for-the-first-time-as-fed-signals-possible-rate-cut-234770">policy pressured the dollar</a>.

In the first of two days of congressional testimony, Powell said many central bankers believed the case for lower rates "had strengthened" as myriad trade conflicts cloud the growth outlook.

Since the June meeting, when Powell's dovish remarks were interpreted as signalling a possible cut, "it appears that uncertainties around trade tension and concerns about the strength of the global economy continue to weigh on the US economic outlook," Powell said.

The remarks confirmed to broad investor expectations about what Powell would say and appeared to quash speculation that last week's strong US jobs report would prevent a rate cut later this month.

Powell has been under constant pressure from US President Donald Trump to cut interest rates but said again Wednesday that White House sniping played no role in his outlook.

All three major indices surged to all-time intraday records near the start of the Wall Street session after Powell's written congressional testimony was released. But the tech-rich Nasdaq Composite Index was the only one to hold the record, ending at 8,202.53, up 0.8 per cent.

The Dow and S&amp;P 500 also finished higher on a day in which European stocks retreated and leading Asian bourses were mixed.

The dollar also shifted course following Powell's remarks.

The US currency had rallied following the jobs report but "today's testimony implies that a rate cut is a 'done deal,'" said Matt Weller in a note on Forex.com.

Heading into Wednesday's much-anticipated hearing, many investors had taken an interest rate cut as a near certainty, viewing the next meeting as a question of how aggressively the Fed would act.

"I don't think it's changed anything. Everyone expected him to cut in July," said Maris Ogg of Tower Bridge Advisors, who thinks the Fed will undertake a 25 basis point cut in interest rates this month.

"But a cut of 50 basis points is not gonna happen," Ogg said. "We're not seeing that much weakness and it would indicate that something is not working well."

Following the testimony, most investors still predicted a smaller interest rate cut but a solid minority bet on a larger 50 basis point cut.

Christopher Vecchio of Daily FX, meanwhile, said Powell's appearance "laid the groundwork for a series of interest rate cuts over the coming months."

In other markets, oil prices jumped more than two per cent after a government inventory report showed a massive drop in US stockpiles last week. Traders also cheered reports that Russian output fell in July to its lowest in nearly three years.

Other factors boosting oil prices included continued diplomatic tensions involving OPEC member Iran and a storm in the Gulf of Mexico that prompted some producers to evacuate offshore workers and suspend some output.

Wall Street stocks cheered dovish testimony from Federal Reserve Chair Jerome Powell on Wednesday, lifting the Nasdaq to a fresh record while the prospect of looser monetary policy pressured the dollar.

Wall Street stocks cheered dovish testimony from Federal Reserve Chair Jerome Powell on Wednesday, lifting the Nasdaq to a fresh record while the prospect of looser monetary policy pressured the dollar. In the first of two days of congressional testimony, Powell said many central bankers believed the case for lower rates "had strengthened" as myriad trade conflicts cloud the growth outlook. Since the June meeting, when Powell's dovish remarks were interpreted as signalling a possible cut, "it appears that uncertainties around trade tension and concerns about the strength of the global economy continue to weigh on the US economic outlook," Powell said. The remarks confirmed to broad investor expectations about what Powell would say and appeared to quash speculation that last week's strong US jobs report would prevent a rate cut later this month. Powell has been under constant pressure from US President Donald Trump to cut interest rates but said again Wednesday that White House sniping played no role in his outlook. All three major indices surged to all-time intraday records near the start of the Wall Street session after Powell's written congressional testimony was released. But the tech-rich Nasdaq Composite Index was the only one to hold the record, ending at 8,202.53, up 0.8 per cent. The Dow and S&P 500 also finished higher on a day in which European stocks retreated and leading Asian bourses were mixed. The dollar also shifted course following Powell's remarks. The US currency had rallied following the jobs report but "today's testimony implies that a rate cut is a 'done deal,'" said Matt Weller in a note on Forex.com. Heading into Wednesday's much-anticipated hearing, many investors had taken an interest rate cut as a near certainty, viewing the next meeting as a question of how aggressively the Fed would act. "I don't think it's changed anything. Everyone expected him to cut in July," said Maris Ogg of Tower Bridge Advisors, who thinks the Fed will undertake a 25 basis point cut in interest rates this month. "But a cut of 50 basis points is not gonna happen," Ogg said. "We're not seeing that much weakness and it would indicate that something is not working well." Following the testimony, most investors still predicted a smaller interest rate cut but a solid minority bet on a larger 50 basis point cut. Christopher Vecchio of Daily FX, meanwhile, said Powell's appearance "laid the groundwork for a series of interest rate cuts over the coming months." In other markets, oil prices jumped more than two per cent after a government inventory report showed a massive drop in US stockpiles last week. Traders also cheered reports that Russian output fell in July to its lowest in nearly three years. Other factors boosting oil prices included continued diplomatic tensions involving OPEC member Iran and a storm in the Gulf of Mexico that prompted some producers to evacuate offshore workers and suspend some output.

Nasdaq ends at record high, dollar falls as US Federal Reserve signals possible rate cut

International Monetary Fund chief <a href="https://www.wionews.com/world/imfs-lagarde-warns-us-china-tariffs-to-slash-global-growth-in-2020-224804">Christine Lagarde on Tuesday</a> announced she would step down "temporarily" from the global crisis lender after being nominated to lead the European Central Bank.

EU leaders announced a deal to fill the top positions in the political and economic bloc, including picking Lagarde to succeed ECB chief Mario Draghi, whose single, eight-year term ends in November.

"I am honored to have been nominated for the Presidency of the European Central Bank," Lagarde said in a statement, adding that she would "temporarily relinquish my responsibilities as Managing Director of the IMF during the nomination period."

The nomination means <a href="https://www.wionews.com/world/imf-chief-christine-lagarde-says-us-china-tensions-threat-to-world-economy-216809">Lagarde will step down</a> two years before the end of her second five-year term at the helm of the IMF, which will open a search for her replacement.

The fund's executive board met Tuesday and named American economist David Lipton, Lagarde's chief deputy, as interim leader of the institution.

"We accept Ms Lagarde's decision to relinquish her IMF responsibilities temporarily during the nomination period," the board said in a statement.&nbsp;

"We have full confidence in First Deputy Managing Director David Lipton as Acting Managing Director of the IMF."

By tradition, since the institutions were created in the wake of World War II, a European has always led the IMF and an American has been at the helm of the World Bank, although emerging market nations in recent years have pressed for more representation.

When Lagarde was selected in 2011, it was the first time the fund had an open leadership search process, in which any board member or country representative could nominate a candidate. Lagarde was selected over Agustin Carstens, then the head of the Mexican central bank.

She has drawn praise for her role leading the IMF in the wake of the global financial crisis.

"She's been a tremendous ambassador for the fund, a great salesperson, a very good communicator," said Mark Sobel, a former US Treasury official and chairman of the Official Monetary and Financial Institutions Forum.

He told AFP that Lagarde has experience in monetary policy even if she has never led a central bank and, like US Federal Reserve Chairman Jerome Powell, is not an economist.

"She's been involved in all the monetary debate and it's not like they don't discuss monetary policy at the fund."

Her second term in office coincided with the rise of US President Donald Trump and a wave of confrontations among major economies over trade, which the former French finance minister described as the major threat to the world economy.

Lagarde has at the same time acknowledged the strains caused by globalization, which has disrupted industries and marginalised some workers. 
&nbsp;

International Monetary Fund chief Christine Lagarde on Tuesday announced she would step down "temporarily" from the global crisis lender after being nominated to lead the European Central Bank.

International Monetary Fund chief Christine Lagarde on Tuesday announced she would step down "temporarily" from the global crisis lender after being nominated to lead the European Central Bank. EU leaders announced a deal to fill the top positions in the political and economic bloc, including picking Lagarde to succeed ECB chief Mario Draghi, whose single, eight-year term ends in November. "I am honored to have been nominated for the Presidency of the European Central Bank," Lagarde said in a statement, adding that she would "temporarily relinquish my responsibilities as Managing Director of the IMF during the nomination period." The nomination means Lagarde will step down two years before the end of her second five-year term at the helm of the IMF, which will open a search for her replacement. The fund's executive board met Tuesday and named American economist David Lipton, Lagarde's chief deputy, as interim leader of the institution. "We accept Ms Lagarde's decision to relinquish her IMF responsibilities temporarily during the nomination period," the board said in a statement. "We have full confidence in First Deputy Managing Director David Lipton as Acting Managing Director of the IMF." By tradition, since the institutions were created in the wake of World War II, a European has always led the IMF and an American has been at the helm of the World Bank, although emerging market nations in recent years have pressed for more representation. When Lagarde was selected in 2011, it was the first time the fund had an open leadership search process, in which any board member or country representative could nominate a candidate. Lagarde was selected over Agustin Carstens, then the head of the Mexican central bank. She has drawn praise for her role leading the IMF in the wake of the global financial crisis. "She's been a tremendous ambassador for the fund, a great salesperson, a very good communicator," said Mark Sobel, a former US Treasury official and chairman of the Official Monetary and Financial Institutions Forum. He told AFP that Lagarde has experience in monetary policy even if she has never led a central bank and, like US Federal Reserve Chairman Jerome Powell, is not an economist. "She's been involved in all the monetary debate and it's not like they don't discuss monetary policy at the fund." Her second term in office coincided with the rise of US President Donald Trump and a wave of confrontations among major economies over trade, which the former French finance minister described as the major threat to the world economy. Lagarde has at the same time acknowledged the strains caused by globalization, which has disrupted industries and marginalised some workers.

Lagarde 'temporarily' steps down as IMF chief; American economist David Lipton named interim leader

Oil prices rose on Friday, with Brent crude heading for its first weekly gain in five weeks on tensions in the Middle East after Iran shot down a US military drone and on hopes for a drop in US interest rates that may stimulate global growth.

While US President Donald Trump played down the destruction of the drone, tensions remain high after the latest incident in the Gulf, which followed tanker attacks last week that raised concerns about crucial oil supplies being disrupted.

The demand-side picture has also improved, with expectations that the US Federal Reserve will cut interest rates at its next meeting and with plans by Beijing and Washington to resume talks to resolve a trade war that has hit economic growth prospects.

Brent crude was up 39 cents, or 0.6%, at $64.84 a barrel by 0034 GMT. The global benchmark rose 4.3% on Thursday and is heading for a weekly gain of more than 4% after four weeks of decline.

US West Texas Intermediate crude was up 32 cents, or 0.6%, at $57.39 a barrel. The US benchmark rose 5.4% on Thursday and is on track for a nearly 10% increase this week.

Potential supply "disruptions have boosted energy prices combined with the dollar weakness after the Fed signalled an interest rate is near," Alfonso Esparza, senior market analyst at OANDA, said in a note.

A weaker greenback tends to support oil prices because crude is usually priced in dollars.

"Trade anxiety has died down, pushing energy prices higher as global growth will not be pressured by a prolonged tariff war," Esparza said.

Concern about slowing economic growth and a US-China trade dispute had pulled oil lower in recent weeks. That came after Brent reached a 2019-high above $75 in April.

Trump said on Thursday he suspected the drone was shot down by mistake and that "it would have made a big difference" to him if the remotely-controlled aircraft had been piloted.

While the comments appeared to suggest Trump was not eager to escalate the latest in a series of incidents with Iran, he also warned that: "This country will not stand for it".

Tehran said the unarmed Global Hawk surveillance drone was on a spy mission over its territory, but Washington said it was shot down over international airspace.

Several top US House Republicans said on Thursday the United States must undertake a "measured response" to Iran.

Tension has been rising in the Middle East, home to over 20% of the world's oil output, after attacks on two tankers near the Strait of Hormuz, a chokepoint for oil supplies.

Washington blamed Tehran for the tanker attacks. Iran denied any role.

A drop in US crude inventories has also supported prices.

Oil prices rose on Friday, with Brent crude heading for its first weekly gain in five weeks on tensions in the Middle East after Iran shot down a US military drone and on hopes for a drop in US interest rates that may stimulate global growth.

Oil prices rose on Friday, with Brent crude heading for its first weekly gain in five weeks on tensions in the Middle East after Iran shot down a US military drone and on hopes for a drop in US interest rates that may stimulate global growth. While US President Donald Trump played down the destruction of the drone, tensions remain high after the latest incident in the Gulf, which followed tanker attacks last week that raised concerns about crucial oil supplies being disrupted. The demand-side picture has also improved, with expectations that the US Federal Reserve will cut interest rates at its next meeting and with plans by Beijing and Washington to resume talks to resolve a trade war that has hit economic growth prospects. Brent crude was up 39 cents, or 0.6%, at $64.84 a barrel by 0034 GMT. The global benchmark rose 4.3% on Thursday and is heading for a weekly gain of more than 4% after four weeks of decline. US West Texas Intermediate crude was up 32 cents, or 0.6%, at $57.39 a barrel. The US benchmark rose 5.4% on Thursday and is on track for a nearly 10% increase this week. Potential supply "disruptions have boosted energy prices combined with the dollar weakness after the Fed signalled an interest rate is near," Alfonso Esparza, senior market analyst at OANDA, said in a note. A weaker greenback tends to support oil prices because crude is usually priced in dollars. "Trade anxiety has died down, pushing energy prices higher as global growth will not be pressured by a prolonged tariff war," Esparza said. Concern about slowing economic growth and a US-China trade dispute had pulled oil lower in recent weeks. That came after Brent reached a 2019-high above $75 in April. Trump said on Thursday he suspected the drone was shot down by mistake and that "it would have made a big difference" to him if the remotely-controlled aircraft had been piloted. While the comments appeared to suggest Trump was not eager to escalate the latest in a series of incidents with Iran, he also warned that: "This country will not stand for it". Tehran said the unarmed Global Hawk surveillance drone was on a spy mission over its territory, but Washington said it was shot down over international airspace. Several top US House Republicans said on Thursday the United States must undertake a "measured response" to Iran. Tension has been rising in the Middle East, home to over 20% of the world's oil output, after attacks on two tankers near the Strait of Hormuz, a chokepoint for oil supplies. Washington blamed Tehran for the tanker attacks. Iran denied any role. A drop in US crude inventories has also supported prices.

Oil prices extend gains amid Middle East tensions, rate cut hopes

<a href="https://www.wionews.com/world/us-oil-sanctions-wont-go-without-response-iran-213205">Oil jumped more</a> than 3% to above $63 a barrel on Thursday after Iran shot down a US military drone, raising fears of a military confrontation between Tehran and Washington.

Also supporting oil were expectations that the US Federal Reserve could cut interest rates at its next meeting, stimulating growth in the world's largest oil-consuming country, and a drop in US crude inventories.

Brent crude, the global benchmark, was up $1.38 at $63.20 a barrel at 0854 GMT, having risen 3.3% to $63.88 earlier in the session.

The US West Texas Intermediate crude rose $1.45 to $55.21.

"It's a combination of factors," Petromatrix analyst Olivier Jakob said of the price rise. "You have more supportive stocks data, the Fed indicating they will cut rates and the shooting down of the drone."

The drone was downed in international airspace over the Strait of Hormuz by an Iranian surface-to-air missile, a US official said. Iran's Revolutionary Guards said the drone was flying over southern Iran.

Tension has been rising in the Middle East, home to over 20% of the world's oil output, after attacks on two tankers near the Strait of Hormuz, a chokepoint for oil supplies. Washington blamed Tehran for the tanker attacks. Iran denied any role.

<a href="https://www.wionews.com/world/oil-prices-fall-on-surging-us-crude-stockpiles-economic-concerns-220779">Concern </a>about slowing economic growth and a US-China trade dispute has pulled oil lower in recent weeks. Brent reached a 2019 high of $75 in April.

Also propelling oil higher on Thursday was a larger-than-expected decline in US crude inventories and the prospect of prolonged supply restraint by producer group OPEC and its allies.

After swelling to near two-year highs, US crude stocks fell by 3.1 million barrels last week, compared with analyst expectations for a draw of 1.1 million barrels, the Energy Information Administration said on Wednesday.

The Organization of the Petroleum Exporting Countries and allies including Russia agreed this week to meet on July 1-2, ending a month of wrangling about the timing of the meeting.

The coalition known as OPEC+ will discuss whether to extend throughout 2019 a deal on cutting 1.2 million barrels per day of production. The deal expires at the end of this month.

Momentum for an agreement appeared to be building as the United Arab Emirates' energy minister said extending the deal was "logical and reasonable".

Oil jumped more than 3% to above $63 a barrel on Thursday after Iran shot down a US military drone, raising fears of a military confrontation between Tehran and Washington.

Oil jumped more than 3% to above $63 a barrel on Thursday after Iran shot down a US military drone, raising fears of a military confrontation between Tehran and Washington. Also supporting oil were expectations that the US Federal Reserve could cut interest rates at its next meeting, stimulating growth in the world's largest oil-consuming country, and a drop in US crude inventories. Brent crude, the global benchmark, was up $1.38 at $63.20 a barrel at 0854 GMT, having risen 3.3% to $63.88 earlier in the session. The US West Texas Intermediate crude rose $1.45 to $55.21. "It's a combination of factors," Petromatrix analyst Olivier Jakob said of the price rise. "You have more supportive stocks data, the Fed indicating they will cut rates and the shooting down of the drone." The drone was downed in international airspace over the Strait of Hormuz by an Iranian surface-to-air missile, a US official said. Iran's Revolutionary Guards said the drone was flying over southern Iran. Tension has been rising in the Middle East, home to over 20% of the world's oil output, after attacks on two tankers near the Strait of Hormuz, a chokepoint for oil supplies. Washington blamed Tehran for the tanker attacks. Iran denied any role. Concern about slowing economic growth and a US-China trade dispute has pulled oil lower in recent weeks. Brent reached a 2019 high of $75 in April. Also propelling oil higher on Thursday was a larger-than-expected decline in US crude inventories and the prospect of prolonged supply restraint by producer group OPEC and its allies. After swelling to near two-year highs, US crude stocks fell by 3.1 million barrels last week, compared with analyst expectations for a draw of 1.1 million barrels, the Energy Information Administration said on Wednesday. The Organization of the Petroleum Exporting Countries and allies including Russia agreed this week to meet on July 1-2, ending a month of wrangling about the timing of the meeting. The coalition known as OPEC+ will discuss whether to extend throughout 2019 a deal on cutting 1.2 million barrels per day of production. The deal expires at the end of this month. Momentum for an agreement appeared to be building as the United Arab Emirates' energy minister said extending the deal was "logical and reasonable".

Oil prices surge as Iran shoots down US drone in Gulf

The BSE benchmark Sensex ended 66 points higher Wednesday after a highly volatile session ahead of the US Federal Reserve meet outcome.

After rallying nearly 400 points during the day, the BSE gauge settled 66.40 points or 0.17 per cent, higher at 39,112.74. The index hit an intra-day high of 39,435.80 and a low of 38,881.05.

The broader NSE Nifty closed almost flat at 11,691.45. During the day, the index touched a high of 11,802.50 and a low of 11,625.10.

Top gainers in the Sensex pack included Tata Steel, Kotak Bank, NTPC, HDFC twins, PowerGrid and ONGC, rising up to 4.60 per cent.

On the other hand, Yes Bank, Tata Motors, Hero MotoCorp, IndusInd Bank, M&amp;M, Bharti Airtel and Bajaj Auto fell up to 5.54 per cent.

The domestic market opened on a positive note following upbeat Asian bourses on hopes that the US Fed might cut rates in the near future, said Narendra Solanki, Head-Fundamental Research (Investment Services) - AVP Equity Research, Anand Rathi Shares and Stock Brokers.

Further, reports of US-China trade talks next week also gave a shot in the arm to global markets, he added.

However, the markets trimmed most of their gains and came off the day's highs led by selling in PSU banks, auto and pharma and IT sectors.

"The markets also failed to draw any sense of relief with the Reserve Bank of India's statement that it will infuse Rs 12,500 crore of liquidity into the system through purchase of government bonds to ease prevailing liquidity conditions," Solanki said.

Elsewhere in Asia, Hang Seng rallied 2.56 per cent, Shanghai Composite Index jumped 0.96 per cent, Nikkei soared 1.72 per cent and Kospi gained 1.24 per cent.

Stock exchanges in Europe were trading on a mixed note in early deals.

On the currency front, the Indian rupee was flat at 69.70 against the US dollar intra-day.

Brent crude futures, the global oil benchmark, fell 0.55 per cent to $61.80 per barrel.

The BSE benchmark Sensex ended 66 points higher Wednesday after a highly volatile session ahead of the US Federal Reserve meet outcome. After rallying nearly 400 points during the day, the BSE gauge settled 66.

The BSE benchmark Sensex ended 66 points higher Wednesday after a highly volatile session ahead of the US Federal Reserve meet outcome. After rallying nearly 400 points during the day, the BSE gauge settled 66.40 points or 0.17 per cent, higher at 39,112.74. The index hit an intra-day high of 39,435.80 and a low of 38,881.05. The broader NSE Nifty closed almost flat at 11,691.45. During the day, the index touched a high of 11,802.50 and a low of 11,625.10. Top gainers in the Sensex pack included Tata Steel, Kotak Bank, NTPC, HDFC twins, PowerGrid and ONGC, rising up to 4.60 per cent. On the other hand, Yes Bank, Tata Motors, Hero MotoCorp, IndusInd Bank, M&M, Bharti Airtel and Bajaj Auto fell up to 5.54 per cent. The domestic market opened on a positive note following upbeat Asian bourses on hopes that the US Fed might cut rates in the near future, said Narendra Solanki, Head-Fundamental Research (Investment Services) - AVP Equity Research, Anand Rathi Shares and Stock Brokers. Further, reports of US-China trade talks next week also gave a shot in the arm to global markets, he added. However, the markets trimmed most of their gains and came off the day's highs led by selling in PSU banks, auto and pharma and IT sectors. "The markets also failed to draw any sense of relief with the Reserve Bank of India's statement that it will infuse Rs 12,500 crore of liquidity into the system through purchase of government bonds to ease prevailing liquidity conditions," Solanki said. Elsewhere in Asia, Hang Seng rallied 2.56 per cent, Shanghai Composite Index jumped 0.96 per cent, Nikkei soared 1.72 per cent and Kospi gained 1.24 per cent. Stock exchanges in Europe were trading on a mixed note in early deals. On the currency front, the Indian rupee was flat at 69.70 against the US dollar intra-day. Brent crude futures, the global oil benchmark, fell 0.55 per cent to $61.80 per barrel.

Sensex ends 66 points higher; auto, bank stocks tank

Domestic equity benchmark BSE Sensex the NSE Nifty turned cautious in early trade Tuesday ahead of US Federal Reserve's meeting, amid escalating global trade war concerns.

After rebounding over 150 points in opening session, the 30-share index pared gains to trade marginally higher at 38,969.76 at 0945 hours.&nbsp;

Similarly, the broader NSE Nifty was quoting slightly up at 11,678.25.

In the previous session on Monday, the BSE gauge settled 491.28 points, or 1.25 per cent, lower at 38,960.79; while the Nifty cracked 151.15 points, or 1.28 per cent, to close at 11,672.15.

Top losers in the Sensex pack in early trade included Yes Bank, Tata Steel, Asian Paints, HUL, SBI and RIL, shedding up to 1.55 per cent.

On the other hand, PowerGrid, Infosys, IndusInd Bank, HCL Tech, Vedanta, M&amp;M, Bajaj Finance and HDFC rose up to 1.42 per cent.

Investors have turned cautious ahead of the US Federal Reserve's policy meeting, scheduled to begin later in the day, traders said.

According to experts, market is finding it difficult to sustain at elevated levels on the back of muted corporate earnings, slow monsoon season, continuous corporate defaults and developing concerns of India-US trade disagreements.

Further adding to worries are concerns around an escalation of the trade war between the US and China, and impacts for India, as well as US data that showed that the economy may not need a rate cut imminently, they said.

Elsewhere in Asia, while Shanghai Composite Index, Hang Seng and Kospi were trading on a positive note in their respective early sessions, while Nikkei was trading in the red.

Meanwhile, foreign institutional investors sold equity worth Rs 331.27 crore, while domestic institutional investors bought shares to the tune of Rs 1,257.86 crore, provisional data available with stock exchanges showed on Monday.

On the currency front, the Indian rupee appreciated 9 paise to 69.82 against the US dollar.

The global oil benchmark Brent crude futures were trading 0.10 per cent lower at 60.88 per barrel.

Domestic equity benchmark BSE Sensex the NSE Nifty turned cautious in early trade Tuesday ahead of US Federal Reserve's meeting, amid escalating global trade war concerns.

Domestic equity benchmark BSE Sensex the NSE Nifty turned cautious in early trade Tuesday ahead of US Federal Reserve's meeting, amid escalating global trade war concerns. After rebounding over 150 points in opening session, the 30-share index pared gains to trade marginally higher at 38,969.76 at 0945 hours. Similarly, the broader NSE Nifty was quoting slightly up at 11,678.25. In the previous session on Monday, the BSE gauge settled 491.28 points, or 1.25 per cent, lower at 38,960.79; while the Nifty cracked 151.15 points, or 1.28 per cent, to close at 11,672.15. Top losers in the Sensex pack in early trade included Yes Bank, Tata Steel, Asian Paints, HUL, SBI and RIL, shedding up to 1.55 per cent. On the other hand, PowerGrid, Infosys, IndusInd Bank, HCL Tech, Vedanta, M&M, Bajaj Finance and HDFC rose up to 1.42 per cent. Investors have turned cautious ahead of the US Federal Reserve's policy meeting, scheduled to begin later in the day, traders said. According to experts, market is finding it difficult to sustain at elevated levels on the back of muted corporate earnings, slow monsoon season, continuous corporate defaults and developing concerns of India-US trade disagreements. Further adding to worries are concerns around an escalation of the trade war between the US and China, and impacts for India, as well as US data that showed that the economy may not need a rate cut imminently, they said. Elsewhere in Asia, while Shanghai Composite Index, Hang Seng and Kospi were trading on a positive note in their respective early sessions, while Nikkei was trading in the red. Meanwhile, foreign institutional investors sold equity worth Rs 331.27 crore, while domestic institutional investors bought shares to the tune of Rs 1,257.86 crore, provisional data available with stock exchanges showed on Monday. On the currency front, the Indian rupee appreciated 9 paise to 69.82 against the US dollar. The global oil benchmark Brent crude futures were trading 0.10 per cent lower at 60.88 per barrel.

Sensex, Nifty turn cautious ahead of US Fed policy meet

Gold prices remained subdued on Monday after retreating from a 14-month peak in the previous session, as the dollar held near multi-week highs on strong US retail sales data, ahead of the US Federal Reserve meeting this week.

Spot gold was down 0.2% at $1,338.86 per ounce as of 0549 GMT, after hitting $1,358.04, its highest since April 11, 2018, on Friday.

<a href="https://www.wionews.com/business-economy/gold-hits-two-week-low-as-upbeat-us-data-lifts-dollar-200423">US gold futures</a> were down 0.2% at $1,343.90 an ounce.

"For now, gold prices are holding tight. The markets have aggressively priced in rate-cut expectations and trade uncertainties have boosted safe-haven assets," said Benjamin Lu, an analyst with Singapore-based Phillip Futures.

Expectations of an interest rate cut at the Fed's June 18-19 meeting fell to 21.7% from 28.3% on Thursday, in the wake of the strong retail data, according to CME Group's FedWatch tool. However, bets for monetary easing at the July meeting remain high at 85%.

Weighing on bullion's appeal was the stronger dollar, which is holding near a two-week high on Monday, supported by strong US retail sales data, analysts said.

US retail sales increased in May and sales for the prior month were revised higher, suggesting a pick-up in consumer spending that could ease fears the economy was slowing down sharply in the second quarter.

Meanwhile, US Trade Representative's Office on Monday will kick off seven days of testimony from US retailers, manufacturers and other businesses about President Donald Trump's plan to hit another $300 billion worth of Chinese goods with tariffs.

"US-China trade tension is a supportive factor for the gold market, the unresolved trade dispute and any escalation is likely to increase demand for gold," said Michael McCarthy, chief market strategist, CMC Markets.

Indicative of the sentiment, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.6% to 764.10 tonnes on Friday from 759.70 tonnes on Thursday.

Hedge funds and money managers raised their net long positions in COMEX gold in the week to June 11, the US Commodity Futures Trading Commission (CFTC) said on Friday.

Physical gold discounts in India widened to their biggest in five months last week as an upsurge in local prices dampened purchases, while China and Singapore saw demand rising from investors looking to hedge against a global slowdown.

Among other metals, silver eased 0.2% to $14.84 per ounce, while platinum rose 0.4% at $801.77.

Palladium fell 0.7% to $1,455.20 per ounce.

Gold prices remained subdued on Monday after retreating from a 14-month peak in the previous session, as the dollar held near multi-week highs on strong US retail sales data, ahead of the US Federal Reserve meeting this week.

Gold prices remained subdued on Monday after retreating from a 14-month peak in the previous session, as the dollar held near multi-week highs on strong US retail sales data, ahead of the US Federal Reserve meeting this week. Spot gold was down 0.2% at $1,338.86 per ounce as of 0549 GMT, after hitting $1,358.04, its highest since April 11, 2018, on Friday. US gold futures were down 0.2% at $1,343.90 an ounce. "For now, gold prices are holding tight. The markets have aggressively priced in rate-cut expectations and trade uncertainties have boosted safe-haven assets," said Benjamin Lu, an analyst with Singapore-based Phillip Futures. Expectations of an interest rate cut at the Fed's June 18-19 meeting fell to 21.7% from 28.3% on Thursday, in the wake of the strong retail data, according to CME Group's FedWatch tool. However, bets for monetary easing at the July meeting remain high at 85%. Weighing on bullion's appeal was the stronger dollar, which is holding near a two-week high on Monday, supported by strong US retail sales data, analysts said. US retail sales increased in May and sales for the prior month were revised higher, suggesting a pick-up in consumer spending that could ease fears the economy was slowing down sharply in the second quarter. Meanwhile, US Trade Representative's Office on Monday will kick off seven days of testimony from US retailers, manufacturers and other businesses about President Donald Trump's plan to hit another $300 billion worth of Chinese goods with tariffs. "US-China trade tension is a supportive factor for the gold market, the unresolved trade dispute and any escalation is likely to increase demand for gold," said Michael McCarthy, chief market strategist, CMC Markets. Indicative of the sentiment, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.6% to 764.10 tonnes on Friday from 759.70 tonnes on Thursday. Hedge funds and money managers raised their net long positions in COMEX gold in the week to June 11, the US Commodity Futures Trading Commission (CFTC) said on Friday. Physical gold discounts in India widened to their biggest in five months last week as an upsurge in local prices dampened purchases, while China and Singapore saw demand rising from investors looking to hedge against a global slowdown. Among other metals, silver eased 0.2% to $14.84 per ounce, while platinum rose 0.4% at $801.77. Palladium fell 0.7% to $1,455.20 per ounce.

Gold prices subdued on firmer dollar; Fed meeting in focus

The tech-rich Nasdaq powered to a fresh record Friday as Wall Street cheered a much better than expected US jobs report for April.

European bourses also advanced following the US report, which set <a href="https://www.wionews.com/world/us-job-creation-surges-in-april-as-unemployment-hits-49-year-low-215776">unemployment at a 49-year low</a>.

"No signs of a slowdown here," said James Knightley, chief international economist at ING.

The US economy added 263,000 net new positions in April, well above the 200,000 forecasts by analysts.

Unemployment fell two tenths to 3.6 per cent but the decline was in part because the pool of workers shrank and fewer people were looking for jobs, pulling them out of the labour force, the Labor Department reported.

Even with the positive attributes to the April jobs data, the report showed wage inflation was measured, putting little pressure on the US Federal Reserve to boost interest rates, analysts said.

"Neither too hot nor too cold," said Stephen Innes, head of trading at SPI, calling the US data "another Goldilocks" payroll report.

"The US economy remains in the sweet spot with extremely robust labour markets driving strong consumption growth but apparently without stoking the inflationary fires," he said.

The tech-rich Nasdaq climbed 1.6 per cent to 8,164.00, about two points above a record earlier in the week.

Bourses in London, Paris and Frankfurt advanced modestly.

Despite the strong jobs data, FTN Financial's Chris Low pointed to a report from the Institute for Supply Management that showed slowing services sector activity.&nbsp;

"I don't think everything is quite as rosy as the jobs numbers suggest but for now traders are happy," FTN Financial's Chris Low told AFP.&nbsp;

Low said investors were also cheered by news that Warren Buffett's Berkshire Hathaway had invested in Amazon, which jumped 3.2 per cent.

"It's him (Buffett) signing off the on the US stock market rally," Low said. "It's not like him to make a high-profile buy at a market top."

The billionaire all-star investor disclosed the move in an interview with CNBC. Buffett previously has lamented not getting into Amazon at an earlier stage, blaming "stupidity" for missing the opportunity in a 2017 interview.

In commodities trading on Friday, oil prices rebounded after falling hard on Thursday in the wake of a surprisingly large build in US oil inventories. Some analysts viewed the increase as a reflection of the improved demand outlook for the US following the strong jobs data.

The tech-rich Nasdaq powered to a fresh record Friday as Wall Street cheered a much better than expected US jobs report for April. European bourses also advanced following the US report, which set unemployment at a 49-year low.

The tech-rich Nasdaq powered to a fresh record Friday as Wall Street cheered a much better than expected US jobs report for April. European bourses also advanced following the US report, which set unemployment at a 49-year low. "No signs of a slowdown here," said James Knightley, chief international economist at ING. The US economy added 263,000 net new positions in April, well above the 200,000 forecasts by analysts. Unemployment fell two tenths to 3.6 per cent but the decline was in part because the pool of workers shrank and fewer people were looking for jobs, pulling them out of the labour force, the Labor Department reported. Even with the positive attributes to the April jobs data, the report showed wage inflation was measured, putting little pressure on the US Federal Reserve to boost interest rates, analysts said. "Neither too hot nor too cold," said Stephen Innes, head of trading at SPI, calling the US data "another Goldilocks" payroll report. "The US economy remains in the sweet spot with extremely robust labour markets driving strong consumption growth but apparently without stoking the inflationary fires," he said. The tech-rich Nasdaq climbed 1.6 per cent to 8,164.00, about two points above a record earlier in the week. Bourses in London, Paris and Frankfurt advanced modestly. Despite the strong jobs data, FTN Financial's Chris Low pointed to a report from the Institute for Supply Management that showed slowing services sector activity. "I don't think everything is quite as rosy as the jobs numbers suggest but for now traders are happy," FTN Financial's Chris Low told AFP. Low said investors were also cheered by news that Warren Buffett's Berkshire Hathaway had invested in Amazon, which jumped 3.2 per cent. "It's him (Buffett) signing off the on the US stock market rally," Low said. "It's not like him to make a high-profile buy at a market top." The billionaire all-star investor disclosed the move in an interview with CNBC. Buffett previously has lamented not getting into Amazon at an earlier stage, blaming "stupidity" for missing the opportunity in a 2017 interview. In commodities trading on Friday, oil prices rebounded after falling hard on Thursday in the wake of a surprisingly large build in US oil inventories. Some analysts viewed the increase as a reflection of the improved demand outlook for the US following the strong jobs data.

Nasdaq ends at record as global stocks cheers strong US jobs growth

US consumer spending in December took its biggest dive in nearly a decade, retreating during a month when Wall Street suffered a historic rout, according to government data released Friday.

In January, consumers also saw the biggest decline in disposable income in six years, suggesting they might not have rushed to resume spending at the start of 2019, the Commerce Department reported.

Meanwhile inflation &nbsp;at the end of the year continued to hover just below the Federal Reserve's two percent target, weighed down by falling energy prices, according to the report.

However, the Fed is working with limited data ahead of this month's interest rate-setting policy meeting, due to the recent government shutdown that spanned five weeks. The Commerce Department was forced to delay many reports, and the release Friday did not have complete data for January, depriving the Fed of a key inflation measure.

As US stocks suffering their worst December since the Great Depression, Americans put the brakes on shopping, causing the biggest drop in consumer spending since September 2009, according to the report.

This came despite a large bump in disposable income, which grew 1.1 per cent that month, its biggest increase in six years, driving up the savings rate to its highest level in nearly three years.

The numbers were another sign that the US economy slowed sharply at the end of 2018. Economists say Wall Street sell-offs can make consumers more cautious about spending.

However, economists say the numbers are misleading and will be revised upwards as more data comes in.

"We remain firmly of the view that the December retail sales and spending numbers will be revised up sharply in due course, but for now the data are grim," said Ian Shepherdson of Pantheon Macroeconomics.&nbsp;

The January dip in income was merely a return to normal after December's increase, he said.&nbsp;

In January, incomes fell and disposable income declined 0.2 per cent, the biggest drop since January 2013, suggesting consumers faced a disincentive to resume spending again at the start of 2019.

Meanwhile, falling energy prices continued to weigh on inflation.

The Personal Consumption Expenditures price index -- the Fed's preferred inflation measure -- rose 0.1 per cent in December compared to November. Excluding volatile food and fuel prices, the "core" index gained 0.2 per cent for December, a tenth higher than economists' expectations.

Year-on-year, the index slowed to 1.7 per cent, its slowest pace since October of 2017, but the core index held steady at 1.9 per cent. 
&nbsp;

US consumer spending in December took its biggest dive in nearly a decade, retreating during a month when Wall Street suffered a historic rout, according to government data released Friday.

US consumer spending in December took its biggest dive in nearly a decade, retreating during a month when Wall Street suffered a historic rout, according to government data released Friday. In January, consumers also saw the biggest decline in disposable income in six years, suggesting they might not have rushed to resume spending at the start of 2019, the Commerce Department reported. Meanwhile inflation at the end of the year continued to hover just below the Federal Reserve's two percent target, weighed down by falling energy prices, according to the report. However, the Fed is working with limited data ahead of this month's interest rate-setting policy meeting, due to the recent government shutdown that spanned five weeks. The Commerce Department was forced to delay many reports, and the release Friday did not have complete data for January, depriving the Fed of a key inflation measure. As US stocks suffering their worst December since the Great Depression, Americans put the brakes on shopping, causing the biggest drop in consumer spending since September 2009, according to the report. This came despite a large bump in disposable income, which grew 1.1 per cent that month, its biggest increase in six years, driving up the savings rate to its highest level in nearly three years. The numbers were another sign that the US economy slowed sharply at the end of 2018. Economists say Wall Street sell-offs can make consumers more cautious about spending. However, economists say the numbers are misleading and will be revised upwards as more data comes in. "We remain firmly of the view that the December retail sales and spending numbers will be revised up sharply in due course, but for now the data are grim," said Ian Shepherdson of Pantheon Macroeconomics. The January dip in income was merely a return to normal after December's increase, he said. In January, incomes fell and disposable income declined 0.2 per cent, the biggest drop since January 2013, suggesting consumers faced a disincentive to resume spending again at the start of 2019. Meanwhile, falling energy prices continued to weigh on inflation. The Personal Consumption Expenditures price index -- the Fed's preferred inflation measure -- rose 0.1 per cent in December compared to November. Excluding volatile food and fuel prices, the "core" index gained 0.2 per cent for December, a tenth higher than economists' expectations. Year-on-year, the index slowed to 1.7 per cent, its slowest pace since October of 2017, but the core index held steady at 1.9 per cent.

US consumer spending in December at historic low, reveals government data

The BSE benchmark Sensex Thursday rallied over 200 points on positive cues from global markets after dovish comments by the US Federal Reserve as it left key policy rates unchanged.

The 30-share index was trading 213.32 points, or 0.60 per cent, higher at 35,804.57.

Similarly, the 50-share NSE Nifty jumped 53.95 points, or 0.51 per cent, to 10,705.75.

On Wednesday, the Sensex ended marginally lower by 1.25 points and the Nifty closed with a negligible loss of 0.4 point.

Top gainers in the Sensex pack include ICICI Bank, RIL, Tata Steel, SBI, Tata Motors, NTPC, Vedanta and TCS, rallying up to 2.20 per cent.

On the other hand, Bajaj Finance, Yes Bank, Hero MotoCorp, Bajaj Auto, HDFC duo and HCL Tech were the top losers, falling up to 1.59 per cent.

On a net basis, foreign portfolio investors (FPIs) bought shares worth a net of Rs 130.25 crore Wednesday, and domestic institutional investors (DIIs) were net buyers to the tune of Rs 502.26 crore, provisional data available with BSE showed.

According to experts, investor sentiment was buoyed by dovish comments by from the US Federal Reserve after it left the key US lending rate unchanged on Wednesday.

The central bank said it would be "patient" about making any further changes, in the clearest signal yet the central bank has heeded concerns about the economy.

Global investors were also optimistic about the ongoing two-day high-level talks between the US and China aimed at settling a six-month trade war that has weakened both sides, shaken financial markets and clouded the outlook for the global economy.

Domestic market, however, will continue to be volatile ahead of the interim budget which will be announced on Friday, traders said.

January series derivatives expiry in this session will also keep investors on edge, they added.

Elsewhere in Asia, Hong Kong's Hang Seng rose 1.27 per cent, Shanghai Composite Index was up 0.63 per cent, Kospi gained 0.18 per cent, and Japan's Nikkei rallied 0.90 per cent in early trade.

On Wall Street, Dow Jones Industrial Average soared 1.77 per cent on Wednesday.

The rupee, meanwhile, was appreciated 18 paise against US dollar to 70.93. 
The benchmark Brent crude futures rose 1.01 per cent to USD 62.16 per barrel.&nbsp;

The BSE benchmark Sensex Thursday rallied over 200 points on positive cues from global markets after dovish comments by the US Federal Reserve as it left key policy rates unchanged.

The BSE benchmark Sensex Thursday rallied over 200 points on positive cues from global markets after dovish comments by the US Federal Reserve as it left key policy rates unchanged. The 30-share index was trading 213.32 points, or 0.60 per cent, higher at 35,804.57. Similarly, the 50-share NSE Nifty jumped 53.95 points, or 0.51 per cent, to 10,705.75. On Wednesday, the Sensex ended marginally lower by 1.25 points and the Nifty closed with a negligible loss of 0.4 point. Top gainers in the Sensex pack include ICICI Bank, RIL, Tata Steel, SBI, Tata Motors, NTPC, Vedanta and TCS, rallying up to 2.20 per cent. On the other hand, Bajaj Finance, Yes Bank, Hero MotoCorp, Bajaj Auto, HDFC duo and HCL Tech were the top losers, falling up to 1.59 per cent. On a net basis, foreign portfolio investors (FPIs) bought shares worth a net of Rs 130.25 crore Wednesday, and domestic institutional investors (DIIs) were net buyers to the tune of Rs 502.26 crore, provisional data available with BSE showed. According to experts, investor sentiment was buoyed by dovish comments by from the US Federal Reserve after it left the key US lending rate unchanged on Wednesday. The central bank said it would be "patient" about making any further changes, in the clearest signal yet the central bank has heeded concerns about the economy. Global investors were also optimistic about the ongoing two-day high-level talks between the US and China aimed at settling a six-month trade war that has weakened both sides, shaken financial markets and clouded the outlook for the global economy. Domestic market, however, will continue to be volatile ahead of the interim budget which will be announced on Friday, traders said. January series derivatives expiry in this session will also keep investors on edge, they added. Elsewhere in Asia, Hong Kong's Hang Seng rose 1.27 per cent, Shanghai Composite Index was up 0.63 per cent, Kospi gained 0.18 per cent, and Japan's Nikkei rallied 0.90 per cent in early trade. On Wall Street, Dow Jones Industrial Average soared 1.77 per cent on Wednesday. The rupee, meanwhile, was appreciated 18 paise against US dollar to 70.93. The benchmark Brent crude futures rose 1.01 per cent to USD 62.16 per barrel.

Sensex jumps over 200 points on firm global cues

The US Federal Reserve will hold its fire this week, leaving interest rates untouched and letting markets calm down after a tumultuous end to 2018.

Coming off Wall Street's worst December since the Great Depression and amid mounting fears about the global economy, Fed policymakers are now unanimously hammering a single message: they will be "patient" before pulling the trigger again.

Fed Chairman Jerome Powell is likely to stick to that script when he announces the Federal Open Market Committee's latest monetary policy decision on Wednesday.

Futures markets are wagering the central bank will actually stand pat for all of 2019, with a growing share betting the Fed could even begin cutting interest rates as soon as next December.

Maybe they should think again.

While a cold wind blew at the end of last year, gathering conditions suggest the Fed could feel compelled to raise the key lending rate as soon as the spring, economists say.

"I think the danger here now is that markets are now expecting nothing," Ian Shepherdson of Pantheon Macroeconomics said in a presentation on monetary policy.

"The Fed could swing around on a dime once it becomes clear that the things that have scared them are no longer very scary."

The month-long partial shutdown of the federal government -- the longest in history -- has been resolved with a provision agreement announced Friday between the White House and Congress but was already gnawing away at GDP.&nbsp;

Had the closure, which idled 800,000 federal workers, continued through March, it could have choked first quarter growth to "zero," chief White House economist Kevin Hassett said last week.

The Fed also is flying blind to some extent because the shutdown halted the flow of economic data from the Commerce Department, including crucial figures on housing, trade, consumption, wages and inflation. It could get some key reports next week as the government reopens.

While December saw blockbuster job creation and tame inflation, it had a batch of very gloomy numbers too.

Amid President Donald Trump's trade war with China, the US manufacturing sector could be starting to crumble, with the sector seeing its biggest one month drop in December since the global financial crisis.

The economy also saw weak orders for durable goods and disappointing income growth. And a downward revision to third-quarter growth included the biggest drop in exports in almost a decade.

Meanwhile, consumer sentiment -- which can help predict spending by ordinary Americans -- hit a two-year low.

Add to this the contraction of the German and Japanese economies, and the slowest Chinese growth in almost three decades, not to mention Wall Street's nightmarish ride last month, and investor dyspepsia becomes easy to understand.

Pricing in zero hikes?

Predicting recessions is very tricky and while a contraction seems unlikely, economists say downside risks are mounting.

Last month, a recession probability indicator from the New York Federal Reserve Bank put the odds of a downturn within a year at 11.5 per cent -- the highest since the depths of the Great Recession in 2009.

But fears of a US recession in 2019 may be "overdone," said Kathy Bostjancic, chief US financial market economist at Oxford Economics.

The recent dip in consumer sentiment was to be expected given that the measures had been so high, she noted.

Oxford expects the Fed raise rates twice this year, with the first in May at the bank's third policy meeting of 2019.

"We don't think they're done tightening this cycle," she said. "The Fed needs to take some time to assess the landscape."

Shepherdson agreed, warning against counting on no Fed moves this year.

"Pricing in zero is very dangerous."

He said the business investment is likely to be sluggish this year but the labour market should tighten as unemployment continues to fall, driving up wages.

That likely would pressure inflation while a host of other potential dangers to the economy either will be resolved or prove less threatening than they seemed.&nbsp;

The potential risks include the trade war with China and its slowing economy, Brexit, the US housing market slump, rising interest rates, high corporate debt, and a possible recession in manufacturing.

"It's something of a mess in the first few months of the year. But lift up your eyes and look to the horizon and not to the ground," Shepherdson said.

&nbsp;

The US Federal Reserve will hold its fire this week, leaving interest rates untouched and letting markets calm down after a tumultuous end to 2018. Coming off Wall Street's worst December since the Great Depression and amid mounting fears about the global economy, Fed policymakers are now unanimously hammering a single message: they will be "patient" before pulling the trigger again.

The US Federal Reserve will hold its fire this week, leaving interest rates untouched and letting markets calm down after a tumultuous end to 2018. Coming off Wall Street's worst December since the Great Depression and amid mounting fears about the global economy, Fed policymakers are now unanimously hammering a single message: they will be "patient" before pulling the trigger again. Fed Chairman Jerome Powell is likely to stick to that script when he announces the Federal Open Market Committee's latest monetary policy decision on Wednesday. Futures markets are wagering the central bank will actually stand pat for all of 2019, with a growing share betting the Fed could even begin cutting interest rates as soon as next December. Maybe they should think again. While a cold wind blew at the end of last year, gathering conditions suggest the Fed could feel compelled to raise the key lending rate as soon as the spring, economists say. "I think the danger here now is that markets are now expecting nothing," Ian Shepherdson of Pantheon Macroeconomics said in a presentation on monetary policy. "The Fed could swing around on a dime once it becomes clear that the things that have scared them are no longer very scary." The month-long partial shutdown of the federal government -- the longest in history -- has been resolved with a provision agreement announced Friday between the White House and Congress but was already gnawing away at GDP. Had the closure, which idled 800,000 federal workers, continued through March, it could have choked first quarter growth to "zero," chief White House economist Kevin Hassett said last week. The Fed also is flying blind to some extent because the shutdown halted the flow of economic data from the Commerce Department, including crucial figures on housing, trade, consumption, wages and inflation. It could get some key reports next week as the government reopens. While December saw blockbuster job creation and tame inflation, it had a batch of very gloomy numbers too. Amid President Donald Trump's trade war with China, the US manufacturing sector could be starting to crumble, with the sector seeing its biggest one month drop in December since the global financial crisis. The economy also saw weak orders for durable goods and disappointing income growth. And a downward revision to third-quarter growth included the biggest drop in exports in almost a decade. Meanwhile, consumer sentiment -- which can help predict spending by ordinary Americans -- hit a two-year low. Add to this the contraction of the German and Japanese economies, and the slowest Chinese growth in almost three decades, not to mention Wall Street's nightmarish ride last month, and investor dyspepsia becomes easy to understand. Pricing in zero hikes? Predicting recessions is very tricky and while a contraction seems unlikely, economists say downside risks are mounting. Last month, a recession probability indicator from the New York Federal Reserve Bank put the odds of a downturn within a year at 11.5 per cent -- the highest since the depths of the Great Recession in 2009. But fears of a US recession in 2019 may be "overdone," said Kathy Bostjancic, chief US financial market economist at Oxford Economics. The recent dip in consumer sentiment was to be expected given that the measures had been so high, she noted. Oxford expects the Fed raise rates twice this year, with the first in May at the bank's third policy meeting of 2019. "We don't think they're done tightening this cycle," she said. "The Fed needs to take some time to assess the landscape." Shepherdson agreed, warning against counting on no Fed moves this year. "Pricing in zero is very dangerous." He said the business investment is likely to be sluggish this year but the labour market should tighten as unemployment continues to fall, driving up wages. That likely would pressure inflation while a host of other potential dangers to the economy either will be resolved or prove less threatening than they seemed. The potential risks include the trade war with China and its slowing economy, Brexit, the US housing market slump, rising interest rates, high corporate debt, and a possible recession in manufacturing. "It's something of a mess in the first few months of the year. But lift up your eyes and look to the horizon and not to the ground," Shepherdson said.

No Fed hike this week but don't rule out more in 2019: Economists

President Donald Trump on Monday renewed his verbal<a href="http://www.wionews.com/world/trump-has-discussed-firing-us-federal-reserve-chairman-powell-report-185879"> assault on the US Federal Reserve</a>, blaming the central bank for mounting fears over the US economy and comparing it to a blundering golfer.

"The only problem our economy has is the Fed," Trump tweeted. "The Fed is like a powerful golfer who can't score because he has no touch - he can't putt!"

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<blockquote class="twitter-tweet" data-lang="en">
The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch - he can’t putt!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1077231267559755776?ref_src=twsrc%5Etfw">December 24, 2018</a></blockquote>
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The Federal Reserve is meant to be independent from the White House but Trump has trampled those barriers in his frustration at what he sees as the bank's poor interest rate policies.

A lifelong real estate developer, Trump has touted the booming US economy as one of his presidency's main achievements.&nbsp;

But the stock market is in steep retreat as investor nerves grow over the fallout from Trump's erratic style and his trade war with China.

Trump said the Fed has no "feel for the Market, they don't understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders."

President Donald Trump on Monday renewed his verbal assault on the US Federal Reserve, blaming the central bank for mounting fears over the US economy and comparing it to a blundering golfer.

President Donald Trump on Monday renewed his verbal assault on the US Federal Reserve, blaming the central bank for mounting fears over the US economy and comparing it to a blundering golfer. "The only problem our economy has is the Fed," Trump tweeted. "The Fed is like a powerful golfer who can't score because he has no touch - he can't putt!" The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch - he can’t putt! — Donald J. Trump (@realDonaldTrump) December 24, 2018 × The Federal Reserve is meant to be independent from the White House but Trump has trampled those barriers in his frustration at what he sees as the bank's poor interest rate policies. A lifelong real estate developer, Trump has touted the booming US economy as one of his presidency's main achievements. But the stock market is in steep retreat as investor nerves grow over the fallout from Trump's erratic style and his trade war with China. Trump said the Fed has no "feel for the Market, they don't understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders."

Central bank US economy's 'only problem', tweets Trump

<a href="http://www.wionews.com/world/us-government-partially-shuts-as-congress-trump-fail-to-reach-deal-185768">US President Donald Trump</a> has discussed firing Federal Reserve Chairman Jerome Powell, Bloomberg reported on Saturday, citing sources.

Trump's frustration with the US central bank chief intensified after this week's interest rate increase and months of stock-market losses, the news agency said, citing four unidentified people familiar with the matter.

The president has talked privately about firing Powell many times in the past few days, it said, citing two of the people.

White House spokesmen declined to comment, as did Federal Reserve spokeswoman Michelle Smith, Bloomberg reported.

The Fed raised interest rates on Wednesday for the fourth time in 2018, and signalled "some further gradual" rate increases ahead.

Global financial markets, including Wall Street stocks, had been hoping for a more dovish policy outlook and sold off broadly.

The Dow had the worst week since the 2008 financial crisis, while the Nasdaq sank into bear market territory.

Any attempt to fire Powell could be seen as undermining the central bank's independence from the administration.

US President Donald Trump has discussed firing Federal Reserve Chairman Jerome Powell, Bloomberg reported on Saturday, citing sources. Trump's frustration with the US central bank chief intensified after this week's interest rate increase and months of stock-market losses, the news agency said, citing four unidentified people familiar with the matter.

US President Donald Trump has discussed firing Federal Reserve Chairman Jerome Powell, Bloomberg reported on Saturday, citing sources. Trump's frustration with the US central bank chief intensified after this week's interest rate increase and months of stock-market losses, the news agency said, citing four unidentified people familiar with the matter. The president has talked privately about firing Powell many times in the past few days, it said, citing two of the people. White House spokesmen declined to comment, as did Federal Reserve spokeswoman Michelle Smith, Bloomberg reported. The Fed raised interest rates on Wednesday for the fourth time in 2018, and signalled "some further gradual" rate increases ahead. Global financial markets, including Wall Street stocks, had been hoping for a more dovish policy outlook and sold off broadly. The Dow had the worst week since the 2008 financial crisis, while the Nasdaq sank into bear market territory. Any attempt to fire Powell could be seen as undermining the central bank's independence from the administration.

Trump has discussed firing US Federal Reserve chairman Powell: Report

After weeks of market volatility and calls <a href="http://www.wionews.com/world/global-markets-stocks-dip-ahead-of-federal-news-oil-prices-drop-185217">by President Donald Trump </a>for the Federal Reserve to stop raising interest rates, the US&nbsp;central bank instead did it again, and stuck by a plan to keep withdrawing support from an economy it views as strong.

US stocks and bond yields fell hard. With the Fed signalling "some further gradual" rate hikes and no break from cutting its massive bond portfolio, traders fretted that policymakers could choke off economic growth.

"Maybe they have already committed their policy error," said Fritz Folts, chief investment strategist at 3Edge Asset Management. "We would be in the camp that they have already raised rates too much."

Interest rate futures show traders are currently betting the Fed won't raise rates at all next year.

Wednesday's rate increase, the fourth of the year, pushed the central bank's key overnight lending rate to a range of 2.25 per cent to 2.50 per cent.

Wall Street stocks fell sharply after the Federal Reserve lifted interest rates. The Dow, which had been up nearly 300 points prior to the decision, finished down 350 points, or 1.5 per cent, at 23,323.66. It meant the blue-chip index was at its lowest level of 2018.

In a news conference after the release of the policy statement, Fed chairman Jerome Powell said the central bank would continue trimming its balance sheet by $50 billion each month, and left open the possibility that continued strong data could force it to raise rates to the point where they start to brake the economy's momentum.

Powell did bow to what he called recent "softening" in global growth, tighter financial conditions, and expectations the US economy will slow next year, and said that with inflation expected to remain a touch below the Fed's 2 per cent target next year, policymakers can be "patient."

Fresh economic forecasts showed officials at the median now see only two more rate hikes next year compared to the three projected in September.

But another message was clear in the statement issued after the Fed's last policy meeting of the year as well as in Powell's comments: The US economy continues to perform well and no longer needs the Fed's support either through lower-than-normal interest rates or by maintaining of a massive balance sheet.

"Policy does not need to be accommodative," he said.

In its statement, the Fed said risks to the economy were "roughly balanced" but that it would "continue to monitor global economic and financial developments and assess their implications for the economic outlook."

The Fed also made a widely expected technical adjustment, raising the rate it pays on banks' excess reserves by just 20 basis points to give it better control over the policy rate and keep it within the targeted range.

The decision to raise borrowing costs again is likely to anger Trump, who has repeatedly attacked the central bank's tightening this year as damaging to the economy.

After weeks of market volatility and calls by President Donald Trump for the Federal Reserve to stop raising interest rates, the US central bank instead did it again, and stuck by a plan to keep withdrawing support from an economy it views as strong.

After weeks of market volatility and calls by President Donald Trump for the Federal Reserve to stop raising interest rates, the US central bank instead did it again, and stuck by a plan to keep withdrawing support from an economy it views as strong. US stocks and bond yields fell hard. With the Fed signalling "some further gradual" rate hikes and no break from cutting its massive bond portfolio, traders fretted that policymakers could choke off economic growth. "Maybe they have already committed their policy error," said Fritz Folts, chief investment strategist at 3Edge Asset Management. "We would be in the camp that they have already raised rates too much." Interest rate futures show traders are currently betting the Fed won't raise rates at all next year. Wednesday's rate increase, the fourth of the year, pushed the central bank's key overnight lending rate to a range of 2.25 per cent to 2.50 per cent. Wall Street stocks fell sharply after the Federal Reserve lifted interest rates. The Dow, which had been up nearly 300 points prior to the decision, finished down 350 points, or 1.5 per cent, at 23,323.66. It meant the blue-chip index was at its lowest level of 2018. In a news conference after the release of the policy statement, Fed chairman Jerome Powell said the central bank would continue trimming its balance sheet by $50 billion each month, and left open the possibility that continued strong data could force it to raise rates to the point where they start to brake the economy's momentum. Powell did bow to what he called recent "softening" in global growth, tighter financial conditions, and expectations the US economy will slow next year, and said that with inflation expected to remain a touch below the Fed's 2 per cent target next year, policymakers can be "patient." Fresh economic forecasts showed officials at the median now see only two more rate hikes next year compared to the three projected in September. But another message was clear in the statement issued after the Fed's last policy meeting of the year as well as in Powell's comments: The US economy continues to perform well and no longer needs the Fed's support either through lower-than-normal interest rates or by maintaining of a massive balance sheet. "Policy does not need to be accommodative," he said. In its statement, the Fed said risks to the economy were "roughly balanced" but that it would "continue to monitor global economic and financial developments and assess their implications for the economic outlook." The Fed also made a widely expected technical adjustment, raising the rate it pays on banks' excess reserves by just 20 basis points to give it better control over the policy rate and keep it within the targeted range. The decision to raise borrowing costs again is likely to anger Trump, who has repeatedly attacked the central bank's tightening this year as damaging to the economy.

US Federal Reserve hikes interest rates; Wall Street stocks tumble

The Indian rupee — which has been in constant decline this year, it fell over 13% in 2018 — may be a top performer of 2019, analysts have said.

Tumbling oil prices have put the rupee on course for the best quarter in nearly two years.&nbsp;

The rally is expected to run well into the new year. During most of this year, elevated energy costs and a strong dollar combined to make the rupee Asia’s worst performer.

But a slump in crude oil prices and a slowdown in the pace of tightening by the federal reserve mean that rupee may resume its winning ways in 2019.

The rupee jumped nearly 2.1 per cent on Monday and Tuesday alone. This is welcome news as political uncertainties were expected to trip up the currency. Lower crude prices have, however, offset that.

Some analysts say that in the short term, the rupee will appreciate further.&nbsp;

Softening of inflation, less hawkishness from the US Federal and hopes of increased capital inflows, a consequence of falling crude oil prices, are some of the reasons which have led to a surge in the Indian rupee against the greenback.

The recent surge is quite significant because rupee was heading towards its worst year since 2013 until the appreciation in the last few days.

It's not only the US Central bank's decision that is aiding the rupee. Reserve bank of India has decided to increase liquidity infusion by 10,000 crore rupees this month. The overall liquidity infusion by RBI will be 50,000 crore rupees. Not just that. RBI has already infused 20,000 crore rupees through purchase auctions open market operations.

All of these are likely to give some respite to the Indian rupee.

The Indian rupee — which has been in constant decline this year, it fell over 13% in 2018 — may be a top performer of 2019, analysts have said. Tumbling oil prices have put the rupee on course for the best quarter in nearly two years.

The Indian rupee — which has been in constant decline this year, it fell over 13% in 2018 — may be a top performer of 2019, analysts have said. Tumbling oil prices have put the rupee on course for the best quarter in nearly two years. The rally is expected to run well into the new year. During most of this year, elevated energy costs and a strong dollar combined to make the rupee Asia’s worst performer. But a slump in crude oil prices and a slowdown in the pace of tightening by the federal reserve mean that rupee may resume its winning ways in 2019. The rupee jumped nearly 2.1 per cent on Monday and Tuesday alone. This is welcome news as political uncertainties were expected to trip up the currency. Lower crude prices have, however, offset that. Some analysts say that in the short term, the rupee will appreciate further. Softening of inflation, less hawkishness from the US Federal and hopes of increased capital inflows, a consequence of falling crude oil prices, are some of the reasons which have led to a surge in the Indian rupee against the greenback. The recent surge is quite significant because rupee was heading towards its worst year since 2013 until the appreciation in the last few days. It's not only the US Central bank's decision that is aiding the rupee. Reserve bank of India has decided to increase liquidity infusion by 10,000 crore rupees this month. The overall liquidity infusion by RBI will be 50,000 crore rupees. Not just that. RBI has already infused 20,000 crore rupees through purchase auctions open market operations. All of these are likely to give some respite to the Indian rupee.

After very troubled year, Indian rupee to be a top performer of 2019?

Tokyo led a rout of Asian shares Thursday, <a href="http://www.wionews.com/business-economy/us-federal-reserve-hikes-interest-rates-wall-street-stocks-tumble-185385">mirroring big losses on Wall Street </a>after the Fed defied unprecedented pressure from Donald Trump and raised interest rates, sparking fears the move could choke economic growth.

The Nikkei plunged to a 15-month low as investors took fright over the pace of monetary tightening, with a slump triggered by the Dow's fall to its lowest level of 2018 gathering pace.

The US Federal Reserve raised rates for the fourth time this year - as expected - but markets reacted badly after chairman Jerome Powell said the bank would not shift course on reducing its balance sheet.

Investors had hoped for a less aggressive approach amid concern that global growth is slowing, but Powell played down the impact of recent market turmoil on the US economy.

"They think the Fed has completely misjudged the situation and now it's just a matter of just trying to find an exit while you can," said Kyle Rodda, a market analyst at IG Group in Melbourne.

"We're probably entering a stage now where markets have got it (in) their head that we're preparing for quite sustained downside going into 2019."

The Fed now projects only two interest rate increases, down from three previously, as it trimmed its forecast for US growth and inflation.

Stephen Innes, head of Asia-Pacific trade at OANDA, said the "Fed delivered a dovish hike, but clearly, there wasn't enough affirmation in the statement that the Fed was close to pausing or ending their interest rate hike cycle sooner than expected".

Some analysts were puzzled by investors' reaction.

Ray Attrill, strategist at National Australia Bank, said the post-Fed sentiment was "a bit surprising" given the bank stressed a "gradual" pace of rate hikes next year.

But the spillover from the rate hike continued to rattle investors in Asia Thursday, deepening concern over global growth prospects which are already facing headwinds from President Trump's trade war with Beijing, a slowing Chinese economy, and potential turmoil from Britain quitting the European Union.

Japanese stocks were given little support by the Bank of Japan, which left rates unchanged with the threat of trade protectionism and slowing global growth casting a pall over the export-dependent economy.

A strong yen also put downward pressure on stocks, with the dollar falling below 112 yen.

Nissan dropped more than two per cent after a Japanese court rejected prosecutors' request to extend the detention of former Nissan chairman Carlos Ghosn after his arrest for financial misconduct.

Shanghai was down more than 0.5 per cent, even after the People's Bank of China said it would supply lower-cost liquidity for up to three years to banks willing to lend more to small companies, as policymakers aim to shore up the flagging economy.

Sydney closed more than one per cent lower while Hong Kong was also down in afternoon trade.

Wednesday's quarter-point hike in the US came after Trump repeatedly demanded on Twitter the bank hold rates, in what was regarded as the most public assault on the Fed's independence in decades.

The US president has cited the dollar's strength as a reason the Fed should stop raising interest rates because higher rates tend to attract foreign capital to a currency.

Both oil contracts slid Thursday, reversing strong gains from a day earlier on concerns about growth and US oversupply, and tracking equity losses.

A smaller than expected fall in US crude stockpiles added to supply glut fears triggered earlier this week by forecasts of increasing shale oil production.

Traders are also wary of prospects of softening global growth.

"A tepid global economic growth outlook also weighed on oil prices as the demand for energy is probably going to remain subdued," said Margaret Yang Yan, from CMC Markets in Singapore.

Tokyo led a rout of Asian shares Thursday, mirroring big losses on Wall Street after the Fed defied unprecedented pressure from Donald Trump and raised interest rates, sparking fears the move could choke economic growth.

Tokyo led a rout of Asian shares Thursday, mirroring big losses on Wall Street after the Fed defied unprecedented pressure from Donald Trump and raised interest rates, sparking fears the move could choke economic growth. The Nikkei plunged to a 15-month low as investors took fright over the pace of monetary tightening, with a slump triggered by the Dow's fall to its lowest level of 2018 gathering pace. The US Federal Reserve raised rates for the fourth time this year - as expected - but markets reacted badly after chairman Jerome Powell said the bank would not shift course on reducing its balance sheet. Investors had hoped for a less aggressive approach amid concern that global growth is slowing, but Powell played down the impact of recent market turmoil on the US economy. "They think the Fed has completely misjudged the situation and now it's just a matter of just trying to find an exit while you can," said Kyle Rodda, a market analyst at IG Group in Melbourne. "We're probably entering a stage now where markets have got it (in) their head that we're preparing for quite sustained downside going into 2019." The Fed now projects only two interest rate increases, down from three previously, as it trimmed its forecast for US growth and inflation. Stephen Innes, head of Asia-Pacific trade at OANDA, said the "Fed delivered a dovish hike, but clearly, there wasn't enough affirmation in the statement that the Fed was close to pausing or ending their interest rate hike cycle sooner than expected". Some analysts were puzzled by investors' reaction. Ray Attrill, strategist at National Australia Bank, said the post-Fed sentiment was "a bit surprising" given the bank stressed a "gradual" pace of rate hikes next year. But the spillover from the rate hike continued to rattle investors in Asia Thursday, deepening concern over global growth prospects which are already facing headwinds from President Trump's trade war with Beijing, a slowing Chinese economy, and potential turmoil from Britain quitting the European Union. Japanese stocks were given little support by the Bank of Japan, which left rates unchanged with the threat of trade protectionism and slowing global growth casting a pall over the export-dependent economy. A strong yen also put downward pressure on stocks, with the dollar falling below 112 yen. Nissan dropped more than two per cent after a Japanese court rejected prosecutors' request to extend the detention of former Nissan chairman Carlos Ghosn after his arrest for financial misconduct. Shanghai was down more than 0.5 per cent, even after the People's Bank of China said it would supply lower-cost liquidity for up to three years to banks willing to lend more to small companies, as policymakers aim to shore up the flagging economy. Sydney closed more than one per cent lower while Hong Kong was also down in afternoon trade. Wednesday's quarter-point hike in the US came after Trump repeatedly demanded on Twitter the bank hold rates, in what was regarded as the most public assault on the Fed's independence in decades. The US president has cited the dollar's strength as a reason the Fed should stop raising interest rates because higher rates tend to attract foreign capital to a currency. Both oil contracts slid Thursday, reversing strong gains from a day earlier on concerns about growth and US oversupply, and tracking equity losses. A smaller than expected fall in US crude stockpiles added to supply glut fears triggered earlier this week by forecasts of increasing shale oil production. Traders are also wary of prospects of softening global growth. "A tepid global economic growth outlook also weighed on oil prices as the demand for energy is probably going to remain subdued," said Margaret Yang Yan, from CMC Markets in Singapore.

Asian markets sink after US Federal Reserve hikes rates