Global Stocks Gain as Fed Signals Confidence in Economy
December 12 2019 - 5:39AM
Dow Jones News
By Caitlin Ostroff
Global stocks edged higher Thursday after the U.S. Federal
Reserve signaled its confidence in the economy's growth prospects
for the next year.
Futures linked to the Dow Jones Industrial Average ticked up
0.1%. European stocks gained slightly, with the Stoxx Europe 600
gauge rising 0.2%
The U.S. central bank's policy makers indicated that they
believe interest rates are low enough to stimulate growth in the
world's largest economy, and left monetary policy unchanged on
Wednesday. The outlook is "a favorable one," Chairman Jerome Powell
said. The Fed's recent market interventions to keep short-term
rates stable are also working, he said.
Later in the day, investors will get a sense of the approach
European Central Bank President Christine Lagarde is likely to take
in her new role when she holds her first public briefing following
a rate-setting meeting. The ECB is widely expected to keep interest
rates at minus 0.5%.
Meanwhile, the U.K.'s FTSE 100 rose 0.4% as investors await the
outcome of the general election.
Politicians in both the major political parties are signaling an
end to years of constrained fiscal policy as the country prepares
to exit from the European Union, and the vote results will play a
crucial role in determining the course of Brexit. While a
Conservative Party majority is seen as most likely, recent polls
have shown that the lead for Prime Minister Boris Johnson and his
group over the Labour Party has narrowed.
The pound, which has rallied against the dollar in the last two
weeks to surpass $1.32, is trading on Thursday up 0.1%.
Write to Caitlin Ostroff at caitlin.ostroff@wsj.com
(END) Dow Jones Newswires
December 12, 2019 05:24 ET (10:24 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Aug 2024 to Sep 2024
FTSE 100
Index Chart
From Sep 2023 to Sep 2024