WASHINGTON, Sept 23 (Reuters) - The Federal Reserve on Wednesday upgraded its assessment of the U.S. economy, saying growth had returned after a deep recession, while reiterating its promise to hold interest rates very low for a long time.
The Fed also said it would slow its purchases of mortgage debt to extend that program's life until the end of March, in a move toward withdrawing the central bank's extraordinary support for the economy and markets during the contraction.
The U.S. central bank, as widely expected, held its benchmark overnight lending rates at close to zero percent.
Thursday, September 24, 2009
Trader's Highlight
DJI-NEW YORK, Sept 23 (Reuters) - U.S. stocks fell on Wednesday as investors worried the Federal Reserve is closer to pulling back on extraordinary measures to inject funding to shore up the economy.
The Fed's policy-setters met and kept interest rates unchanged, as expected, but they also said the U.S. central bank would slow purchases of mortgage debt to extend that program's life until the end of March. That was seen as a step toward a measured withdrawal of its extraordinary support for the economy during the downturn.
The Dow Jones industrial average <.DJI> shed 81.32 points, or 0.83 percent, to 9,748.55. The Standard & Poor's 500 Index <.SPX> declined 10.79 points, or 1.01 percent, to 1,060.87. The Nasdaq Composite Index <.IXIC> lost 14.88 points, or 0.69 percent, to 2,131.42.
NYMEX-NEW YORK, Sept 23 (Reuters) - U.S. crude futures closed nearly 4 percent lower on Wednesday, clearly stung by data showing unexpectedly large weekly increases in domestic crude oil and refined product supplies.
On the New York Mercantile Exchange, new front-month November crude settled down $2.79, or 3.89 percent, at $68.97 a barrel, trading from $68.57 to $71.81.
CBOT-SOYBEANS - November down 1-1/2 cents at $9.20-1/2 a bushel. Waning worries about a crop-killing frost next week weighing on markets but futures bounced from session lows as dollar weakened. Soybeans losing ground to corn as spreads adjust after months of soy gaining on corn. Large speculators hold a net long soybean position and are short corn which tends to trigger corn/soy spreading.
US Census Bureau to issue monthly crush data on Thursday. Traders expecting soybean crushings in a range of 118 million to 119.1 million bushels.
CBOT-SOYOIL - October down 0.35 cent at 34.16 cents per lb; December down 0.36 cents at 34.56. Weakness in crude oil market pressures prices.
FCPO-KUALA LUMPUR, Sept 23 (Reuters) - Malaysian crude palm oil futures dropped 2 percent on Wednesday as traders booked profits after a cargo surveyor reported an improvement in exports and vegetable oil markets weakened.
Benchmark December contract on the Bursa Malaysia Derivative Exchange settled down 44 ringgit at 2,146 ringgit ($620) a tonne. Overall volume more than doubled to 11,386 lots of 25 tonnes each compared to the usual 5,000 lots.
REGIONAL EQUITIES-BANGKOK, Sept 23 (Reuters) - Singapore's stock market ended
flat on Wednesday as big caps such as DBS Group and CapitaLand came under selling pressure, and other regional bourses were mixed, with Malaysian banks falling but Thai energy shares up.
Selling brought regional indexes down from their day's highs ahead of a U.S. Federal Reserve policy decision later in the day, with its post-meeting statement expected to provide direction on the economic outlook.
Malaysia <.KLSE> eased 0.2 percent after touching 15-month highs, weighed down by a 3.9 percent fall in Malaysia Mining Corp and a 2.1 percent loss in financial firm AMMB
The Fed's policy-setters met and kept interest rates unchanged, as expected, but they also said the U.S. central bank would slow purchases of mortgage debt to extend that program's life until the end of March. That was seen as a step toward a measured withdrawal of its extraordinary support for the economy during the downturn.
The Dow Jones industrial average <.DJI> shed 81.32 points, or 0.83 percent, to 9,748.55. The Standard & Poor's 500 Index <.SPX> declined 10.79 points, or 1.01 percent, to 1,060.87. The Nasdaq Composite Index <.IXIC> lost 14.88 points, or 0.69 percent, to 2,131.42.
NYMEX-NEW YORK, Sept 23 (Reuters) - U.S. crude futures closed nearly 4 percent lower on Wednesday, clearly stung by data showing unexpectedly large weekly increases in domestic crude oil and refined product supplies.
On the New York Mercantile Exchange, new front-month November crude
CBOT-SOYBEANS - November
US Census Bureau to issue monthly crush data on Thursday. Traders expecting soybean crushings in a range of 118 million to 119.1 million bushels.
CBOT-SOYOIL - October
FCPO-KUALA LUMPUR, Sept 23 (Reuters) - Malaysian crude palm oil futures dropped 2 percent on Wednesday as traders booked profits after a cargo surveyor reported an improvement in exports and vegetable oil markets weakened.
Benchmark December contract
REGIONAL EQUITIES-BANGKOK, Sept 23 (Reuters) - Singapore's stock market ended
flat on Wednesday as big caps such as DBS Group and CapitaLand came under selling pressure, and other regional bourses were mixed, with Malaysian banks falling but Thai energy shares up.
Selling brought regional indexes down from their day's highs ahead of a U.S. Federal Reserve policy decision later in the day, with its post-meeting statement expected to provide direction on the economic outlook.
Malaysia <.KLSE> eased 0.2 percent after touching 15-month highs, weighed down by a 3.9 percent fall in Malaysia Mining Corp
Trader's Comment: CPO futures prices ended lower on profit taking activities.
CPO futures prices ended lower on profit taking activities. Benchmark Dec09 had been hovering in negative territory between 2172-2188 through out the morning session after opened RM10 lower at 2180, tracking the softer tone of eCBOT soy oil and Dalian palm in the early trading time. Although the released of Sep1-20 palm oil export data by private cargo surveyors SGS which reported an increase of 2.9% had reinforced market expectation of higher export in month end, however market sentiment did not improve in the second session but dampened further as traders took this opportunity to book their profit after last week’s rally. Prices continued to fall lower through out the second session and hit intra day low of 2142 before it settled RM44 lower at 2146. Daily volume was low with only 11,386 contracts traded as many traders are still off due to holidays.
FCPO Daily: Still in consolidation phase
Market is likely to continue its consolidation phase in near term. Thus, we maintain the upside resistance at 2200-2220 and downside support is pegged at 2119-2122 (leftover gap on 16/9/2009).
CBOT Soyoil Daily: Tight rangy mode
Market was moving in tight rangy mode into a consolidation mode. Thus, market may trade in range between USD35.20-35.30 to USD34.00
NYMEX Crude Daily: Losing ground
Market is losing ground further after few round failed to break through the overhead resistance at USD73 convincingly. Thus, consolidation phase is likely to extend provided underline support at USD67 is defended. Violation of it may weaken the overall immediate technical landscape.
SSE Daily: Tough resistance at 3,060-3,070
Market was facing tough resistance at 3,060 to 3,070 following prices failed to stay firm. Hence, market may due for a correction in near term. We are looking for the underline support at 2,640 levels, violation of it may provide more room to bias downside potential.
DJI Daily: In Positive tone
Market shy away after tested the recent high at 9,900 levels. However, overall market momentum remains in positive tone. Thus, we are now looking for the upside target at 10,000 levels. To the downside, support is maintain at 9600 levels.
FKLI Daily: Upward posture is maintaining well
Market gave up most of its gains after tested the fresh new high at 1232 levels. Bulls still maintain its upward posture without any sign of tiredness. Thus, we remain positive towards the near term market and upside resistance is adjusted to 1240-1250. To the downside, support is pegged at 1200.
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