Stocks bounced back Tuesday as emerging market turmoil eased and investors sifted through the latest earnings reports. The Dow gained 90 points, while the S&P 500 and Nasdaq also got a bump. The win snapped a five-day losing streak for the Dow. Its been a rough month for investors. All three major indexes have bounced around over the past few weeks and are down slightly for the month. But investors regained some confidence Tuesday as the flight from emerging markets slowed and the currencies of some troubled economies stabilized. Investors also geared up for the Federal Reserves policy announcement Wednesday afternoon. The Feds plans to reign in the flow of cheap money. Investors expect the Fed to announce a further cut to its bond-buying program Wednesday, which could prompt a withdrawal of cash from vulnerable emerging markets. JSE News THE JSE finished flat on Tuesday, as investors remained cautious ahead of the US Federal Reserve’s two-day policy meeting, which kicked off on Tuesday. Market participants will keep a close watch on the steps the US central bank will take on its monetary stimulus programme. If expectations of a further $10bn cut in its asset repurchase programme materialise, emerging markets are likely to come under further pressure in the short term. At 5pm, the all share index was flat (-0.06%) at 45,724.70 points, with the blue-chip top 40 index little changed, down 0.01%. The market had no real direction Tuesday, apart from the rand stabilising a bit against the major currencies. Meanwhile, the rand’s recovery led to a 2.83% fall in gold miners, while the platinum index lifted 1.15% despite stalled wage negotiations in the sector. A second day of wage talks between the Association of Mineworkers and Construction Union (Amcu) and platinum mining companies had yielded no results by late afternoon on Tuesday. Representatives from Anglo American Platinum‚ Lonmin and Impala Platinum are meeting for three days of talks, ending on Wednesday, in the hope of reaching a wage settlement to end industrial action, now in its first week. Among other individual shares on the JSE, AngloGold Ashanti dropped 3.45% to R152.55 and Harmony declined 3.16% to R30.96. Among platinums, Anglo American Platinum rose 1.64% to R435.50 and Impala gained 1.47% to R120.49. In resources, African Rainbow Minerals lost 2.99% to R211, Exxaro gave back 2.67% to R151.80. Sasol, however, added 1.19% to R543.40. Gold News Gold extended losses to a third session on Wednesday as investors turned jittery ahead of the U.S. Federal Reserves statement on the outlook for its bond-buying stimulus. A rebound in stock markets after Turkey raised its key interest rates, calming fears about emerging markets, also hurt safe-haven gold. Spot gold fell 0.3 percent to $1,252.30 an ounce by. World Market News Stocks and currencies across Asia jump, buoyed by a surprise rate increase in Turkey that joins similar moves in India and Brazil as developing countries seek to attract cash and restore confidence in their markets
Posted on: Wed, 29 Jan 2014 06:05:09 +0000
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