Investors sentiments played the statements of members of Committee on open markets FRS of the USA, who believe the next month a good option for raising interest rates.
MOSCOW, 19 Nov. U.S. stocks on Wednesday jumped 1.4% to 1.8% after the fed statement about the possible lifting of the base interest rate in December of this year, according to AFP.
The Dow Jones industrial average increased 1.42% to 17737,16 point, high-tech NASDAQ — on 1,79%, to 5075,20 points, the index of wide market S&P 500 by 1.62% to 2083,58 item.
According to published on Wednesday protocols of the October meeting of the regulator, the majority of the members of the Committee on open markets FRS of the USA believes that December may be an appropriate time to raise interest rates. The meeting participants stressed that the decision will depend on how well executed medium-term economic Outlook relative to data obtained prior to the meeting.
Meanwhile, some analysts are skeptical of the fed comments about economic growth in the United States. “The economic environment was better 12 months ago than it is now, so that statistics has little to do with the intention of the fed to raise rates. We think they do it to preserve the remnants of its reputation,” said Reuters managing Director of Capital Advisors Growth Fund Channing Smith (Channing Smith).
Earlier, the U.S. Department of Commerce has published data on the number of new houses in October, which decreased by 11% compared with September and amounted to 1.06 million. The September figure was revised downward to 1,191 million from 1,206 million homes. Analysts assumed that the number of new buildings in the U.S. in October fell 3.8% compared to September — up to 1.16 million.
The number of building permits in October increased by 4.1% to 1.15 million from the September index to 1,105 million. The indicator has completely coincided with expectations of analysts and has allowed investors to believe that the October market slowdown temporary.