FOMC --> commodities, stocks, dollar For the Fed, consensus has congealed around a reduction of $10-$15 billion a month with all purchases ending by the middle of next year. Yet even that cautious timetable would be contingent on the economy performing as well as expected. With such an outcome largely priced in, it could lead Treasuries and the dollar to rally modestly. A slower tapering would tend to benefit bonds and stocks but hurt the dollar. The decision and economic projections are out at 1800 GMT while Fed Chairman Ben Bernanke starts his press conference half an hour later. Often markets can react violently to the former, then completely reverse course depending on what Bernanke says. For commodities, the more dovish the outcome from the Fed the more supportive for prices. Copper futures were a shade firmer at $7,084.75 on Wednesday, though still down 11 percent for the year so far. Spot gold faded to $1,303.81 and was threatening a break of major chart support that could see it to $1,272 in a hurry. Oil prices were pressured as a deal averting any imminent U.S. attack on Syria calmed fears of a disruption to Middle East supplies and after output resumed at a large oilfield in western Libya. Brent crude for delivery in November fell 43 cents to $107.76 a barrel. U.S. crude for October delivery held steady at $105.42 a barrel. - Reuters
Posted on: Wed, 18 Sep 2013 01:08:46 +0000
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