US Top News and Analysis
Asia-Pacific stock markets were largely lower on Thursday, after the U.S. Federal Reserve opted to hold interest rates steady at the end of its two-day meeting.
Fed Chair Jerome Powell ruled out the possibility of a rate hike, easing worries over the central bank likely not being able to rein in inflation.
Focus will be on the Japanese yen, which had a volatile start to the week amid suspected government intervention to prop up the currency on Monday. It was last trading at 155.83 against the U.S. dollar.
Japan’s Nikkei 225 fell 0.70%, while the broader Topix shed 0.4% in early trading.
South Korea’s Kospi was about 0.1% lower, while the smaller-cap Kosdaq dipped 0.1%. Investors parsed consumer prices data from South Korea, which showed a slower rise in April from March.
In Australia, the S&P/ASX 200 added 0.2%.
Futures for Hong Kong’s Hang Seng index stood at 17,460, after the HSI’s closed at 17,763.03.
Wall Street stock indexes ended the session mixed on Wednesday after the Fed meeting.
The Dow added 87.37 points, or 0.23%. The S&P 500 shed 0.34%, while the Nasdaq Composite slid 0.33%.
— CNBC’s Samantha Subin and Hakyung Kim contributed to this report.
U.S. crude oil falls below $80, hits seven-week low as stockpiles surge on lackluster demand
U.S. oil prices tumbled more than 3% to dip below $80 a barrel on Wednesday as crude stockpiles surged on lackluster demand.
The West Texas Intermediate contract for June delivery fell $2.83, or 3.45%, to $79.10 a barrel, the lowest level in seven weeks. Brent July futures lost $2.77, or 3.21%, to $83.56 a barrel.
U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude as demand for gasoline has softened.
“The refiner is totally floundering on the run rate and that’s because they don’t believe there’s demand there,” said Bob Yawger, director of energy futures at Mizuho Americas.
— Spencer Kimball
Federal Reserve keeps rates steady, moves to ease the pace of balance sheet reduction
The Federal Reserve on Wednesday kept interest rates steady, deciding not to lower rates as it contends with persistent pricing pressures.
The central bank kept its benchmark short-term borrowing rate in a targeted range between 5.25% and 5% in what was a widely anticipated move. The federal funds rate has been at that level since July 2023.
The Federal Open Market Committee voted to ease the pace at which it is lowering bond holdings on the Fed’s balance sheet, a move that could signal an incremental easing of monetary policy.
The S&P 500 was slightly lower following the decision.
— Sarah Min, Jeff Cox
Dollar index falls to session low
The dollar index declined 0.1% to 106.09 Wednesday afternoon following the Federal Reserve’s decision to maintain its benchmark short-term borrowing rate in a range between 5.25% and 5%. The decision had been widely anticipated by the market.
However, the dollar index was still above Tuesday’s low of 105.667.
— Hakyung Kim, Gina Francolla
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