Market Headlines – 2/11/2017

US

• US. stocks advanced and the dollar rose after the Federal Reserve acknowledged economic growth is solid. The S&P 500 Index edged higher by 0.2% after the Fed reinforced expectations for a December rate increase by subtly upgrading its assessment of the economy.
• In other news, reports yesterday stated that President Donald Trump will nominate Jerome Powell to lead the Federal Reserve. Powell will inherit a central bank that anticipates eventually reaching its 2% inflation target, given a strengthening labour market and solid economic activity.

 

Europe

• European stocks rose, advancing 0.6%, as basic resources companies jumped to the highest level since 2013 and the euro slid for a second day, boosting the sentiment for the region’s exporters.
• In the UK, anything other than a rate hike from the Bank of England today would be a surprise to markets. Governor Mark Carney may signal even more tightening if the economy performs in line with new forecasts, but this is very unlikely.

 

Asia

• In Asia overnight, Chinese shares declined 0.4% as a rally by insurance companies wavered and a measure of China’s tech and small cap shares fell. Japanese stocks gained 0.5%.