Saturday, November 1, 2014

Fed’s historic decision, the record of all time Wall Street and … – Money.pl

Fed's historic decision, the record of all time Wall Street and … – Money.pl

2014-10-31 17:05

Author: Maciej Rynkiewicz

Less than one percent today, and one and a half percent in terms of the whole week has gained national group of blue chips. It’s hard to be recognized that internal factors have a positive impact on domestic trading companies. Note the markets during the week ending was focused primarily on events from overseas, where at this moment the most important indexes break records of all time.

Above the line end also medium-sized companies trading groups and small, although their results in terms of the week are worse than the WIG 20. Wider WIG50 gained just over percent, while the widest WIG250 about one percentage point less.

Improved sentiment at the end of today’s trading, among other things thanks to the situation on Wall Street. Rustic indexes, after a very strong start, now well over a record percentage increases. S & amp; P 500 back above 2000 points and is already a few buds from the historical record. At the maxima of all time is now for the Dow Jones Industrial.

Great session on Wall Street aftermath of today’s decision of the central bank of Japan, which resulted in increases in most markets around the world. Body suddenly decided to increase the monetary base by 80 trillion yen per year. The Japanese Nikkei 225 gained 4.83 percent closing session.

US investors react in this way also two important publications macro. Firstly, the rate of the University of Michigan, showing the optimism of local consumers, increased from 84.6 in September to 86.9 points, above economists’ estimates. This is the highest reading until the last seven years. And it’s not the end of good data from the United States. PMI index for manufacturing in the Chicago area, one of the most important industrial regions of the world, rose in October from 60.5 to 66.2 points., Reported the Institute for Supply Management. Analysts had expected a level of 60 points.



historic decision of the Federal Reserve

The data and events from overseas actually dominated the whole week on the stock markets. The topic number one was a two-day Federal Reserve meeting, during which the Committee decided to completely extinguished QE3 program. Since its implementation in August 2012, issued a total of about 1.6 trillion new dollars.

Economic activity of the United States is growing at a moderate pace. Labour market conditions are improving still, with a large number of new jobs and falling unemployment. The indicators on the labor market suggest that the under-utilization of labor-power is getting smaller – read the published justification.

The Fed, however, decided not to raise interest rates. The federal funds rate remained so at a record low 0-0.25 percent. The central bank also did not specify when he decides to change them. Part of the market speculated that the bank decides to break up with a vague promise to raise their considerable time at the end QE3 and replace it concretes. That has not happened, but as a novelty Fed noted that the decision will be subjected the data from emerging from the economy.

The day after the Federal Reserve’s decision appeared to change the data of the US GDP. The initial rate fell from 4.6 percent. in the second quarter to 3.5 percent. third in terms anualizowanym, however, was much greater than the estimates of economists.

The results of companies in the spotlight

The relatively good performance of the US economy to some extent confirmed by the results of local companies. The season is in full, but now you can see that the third quarter was very strong. Of all the companies in the S & amp; P 500, which has so far published financial reports, more than 75 percent reported better than expected results, calculated Reuters.

How will it look on the Stock Exchange? Season really just starting, but already had to deal with big surprises. Regret may especially those who got rid of the stock exchange before the national results – only yesterday share price went up by 14 percent. Net profit in the third quarter of the Warsaw Stock Exchange was 30 million, was a better year on year by 16 percent and by as much as 28 percent of analysts’ estimates. Investors also pleased the update strategies and plans relating to the payment of dividends.

On the other hand, as much as 7 percent during the day fell on Thursday, CP course. But it was not related to the publication of the results, only the departure of President Dominik Libicki. Some investors could conclude that the company’s business focus will move from media to telecommunications, which may have a negative impact on its valuation. Solorz-Zak after the decision but stressed that all the assumptions, plans and objectives of the group, of which the market was informed after switching to Digital Polkomtel, remain unchanged.

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