The fed kept its base rate unchanged


The Federal reserve system of the United States following two days of negotiations made the decision to leave the rate on Federal funds at level of 0.25-0.50% — in line with market expectations.

Market expectations

On 21 September, the Russian stock market had another inactive session, pending a decision on the rate and press conference of Yellen, and the growth on international markets ensured the growth of many of the index securities. The MICEX index at 19:05 increased relative to the previous trading day by 0.3%, to 1 997,67 points, RTS — on 1,01%, to 979,54 points. The increase of oil quotations after the publication of the statistics on stocks in the United States has not had a significant impact on the movement of the Russian indexes.

The day before the auction ended almost unchanged, while the trading volumes since the beginning of the week remain low. Traders attribute this to the lack of market participants are motivated to adjust their positions before the announcement of the rate decision.

“The opening of the Russian market of tomorrow will depend on how American investors would perceive the statements Yellen”, — quotes Reuters the head of operations on the Russian stock market IR “freedom Finance” George Vashchenko. According to him, if the USA stock exchanges will be closed without changes, this could be unfavorable signal, so now the markets are waiting for. “We do not recommend customers to open long position”, to jump into this train always have time,” he says.

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