World shares hit 12-month peak; IMKB continues rise
Posted by meb at September 24th, 2009
World stocks hit their highest in nearly 12 months on Wednesday and the dollar touched a one-year low before steadying, but investors remained cautious ahead of the Federal Reserve’s policy decision later in the day.
The İstanbul Stock Exchange shares gained 0.89 percent following the end of the first session. Crude oil fell towards $71 a barrel, pressured by doubts over US demand after industry data showed a surprise build in crude stockpiles. The MSCI world equity index was up 0.2 percent at 291.69 points after rising to 292.08, its highest since early October last year. The FTSEurofirst index of top European shares rose 0.4 percent on the back of stronger financial stocks. The MSCI index has risen 28 percent so far this year.
Investors awaited a decision by the Fed, which is widely expected to hold overnight lending rates at close to zero percent. The Fed is likely to repeat its intention to keep rates exceptionally low for an extended period in a statement at around 1815 GMT, after the US central bank’s two-day policy meeting draws to a close. “We think the Fed is unlikely to communicate any near-term reversal of its exceptionally accommodative monetary policy,” said Geoffrey Kendrick, currency analyst at UBS. The Fed is also expected to take note of an improving economy, while cautioning that high unemployment puts the recovery at risk.
source: Today’s Zaman
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