US. stocks fluctuated, while Treasuries turned higher (yields lower) and the dollar slipped after the Federal Reserve held interest rates steady and signalled it will start unwinding its balance sheet “relatively soon.”
The S&P 500 Index swung between gains and losses. Corporate results from AT&T to Boeing bolstered equities earlier in the session.
Treasury yields turned lower as the Fed indicated inflation continues to run below its target. The Fed said near-term risks to the economic outlook appear “roughly balanced,” even as inflation remains persistently below the 2 percent target. The start of balance-sheet normalization — possibly as soon as September — is another policy milestone in the economic recovery.
Oil held gains, rising 1.5%, as government data showed U.S. crude stockpiles shrank to the lowest level since the start of the year, easing a global glut.
The Stoxx Europe 600 Index gained 0.5%, with the earnings season entering its busiest period. The benchmark index is still down about 3.5% from a peak in May, hurt by worries that a recent rally in the euro could derail Europe’s earnings recovery.
Today will be a busy day for Europe with companies worth more than $3 trillion are set to report their accounts.
In Asia overnight, Japanese stocks gained 0.1% whilst Chinese equities remained unchanged.
Japanese shares rose as technology companies gained on optimism over corporate earnings, overshadowing a decline in banks after the U.S. Federal Reserve signalled that inflation remains persistently below its target.