Morning Briefing: Markets react to Fed rate rise

Markets react to Fed rate rise

There’s a cautious tone to world markets Thursday following the Fed’s decision to raise interest rates.
Also in focus is an increase in US oil stockpiles, which has led to another drop in prices overnight; and central bank meetings in the UK and Japan this week.

Asian indexes closed mostly lower even though they had expected the Fed’s move. Shanghai outperformed to close higher. Sydney was one of the worst performers of the session, losing 1.2 per cent despite far higher-than-expected gains in the labour market. Australia’s mining sector was one of the largest drags on equities.
European indexes are trending lower with central banks in focus. The Bank of England will announce its latest interest rate decision later.

A report by the Washington Post that Donald Trump is to be investigated for alleged obstruction of justice may affect Wall Street.

Wall Street and Toronto are expected to open lower. Canadian home sales data and several US economic indicators are due.
 

	Latest	1 month ago	1 year ago
North America (previous session)
US Dow Jones	21,374.56 (+0.22 per cent)	+1.87 per cent	+21.17 per cent
TSX Composite	15,170.13 (-1.36 per cent)	-2.94 per cent	+8.95 per cent
Europe (at 5.00am ET)
UK FTSE	7,422.36 (-0.70 per cent)	-0.43 per cent	+24.39 per cent
German DAX	12,707.47 (-0.77 per cent)	-0.78 per cent	+32.28 per cent
Asia (at close)
China CSI 300	3,528.79 (-0.18 per cent)	+3.81 per cent	+13.23 per cent
Japan Nikkei	19,831.82 (-0.26 per cent)	-0.19 per cent	+24.58 per cent
Other Data (at 5.00am ET)
Oil (Brent)	Oil (WTI)	Gold	Can. Dollar
46.94 (-0.13 per cent)	44.59 (-0.31 per cent)	1261.10 (-1.16 per cent)	U$0.7536
			Aus. Dollar
			U$0.7590

Bank of America makes job cuts

An unspecified number of jobs are to go at Bank of America as part of a cost-cutting plan and operational changes.

The jobs are in the bank’s operations and technology division, which has been transitioning from outdated systems by moving to lower cost solutions. Data centres have also closed.

The jobs are being cut at the bank’s Charlotte, NC headquarters.