USA stocks rise after Fed minutes

FOMC Split in July Over US Inflation Concerns

Officials anxious about low inflation said that the Fed should delay any further rate hikes until it had greater assurance that the slowdown stemmed from temporary factors and that prices would climb more quickly in coming months.

"What the Federal Reserve is going to do with their balance sheet as well as with interest rates is going to be a key component to how much volatility there will be within the financial markets, the equity markets as well as the bond markets", Chad Morganlander, portfolio manager at Washington Crossing Advisors, said Wednesday afternoon.

The minutes rekindled debate on the timing for future policy moves, including when the central bank will begin winding down its balance sheet, as economic data continue to paint a mixed picture on the strength of the American economy.

Shares erased gains following US President Donald Trump's disbanding of two high-profile business advisory councils after two more CEOs resigned from the manufacturing council on Wednesday in response to his comments on weekend violence in Charlottesville, Virginia. The moves sparked speculation that the president's embattled policy agenda may face higher hurdles amid flagging support among business leaders.

About 5.8 billion shares changed hands on USA exchanges. In addition, retail sales data released Tuesday showed that American consumers splurged in July, bolstering the prospects of accelerating growth in the second half. Out of eleven, seven of the major S&P sectors were higher with.SPLRCM 0.46% rise leading the advancers.

The Dow Jones Industrial Average rose 25.88 points, or 0.12 percent, to end at 22,024.87, the S&P 500 gained 3.5 points, or 0.14 percent, to 2,468.11 and the Nasdaq Composite added 12.10 points, or 0.19 percent, to 6,345.11.

- The U.K.'s FTSE 100 index surged 0.7 percent.

Spot gold was up 0.3 per cent at $1,287.01 per ounce by 0340 GMT, after gaining almost 1 per cent the previous day.

The greenback reached a high of Y110.948 against the Japanese Yen Wednesday, but has since pulled back to around Y110.175.


Benchmark 10-year notes US10YT=RR last rose 10/32 in price to yield 2.2325 percent, from 2.266 percent late on Tuesday.

The Canadian dollar had gained more than 1 percent on Wednesday and last stood at C$1.2622 to the dollar, near its highest level in nearly two weeks.

- West Texas Intermediate crude fell 1.7 percent to $46.75 a barrel.

Bristol-Myers Squibb was down about 2 percent after its combination drug to treat previously untreated patients with a type of kidney cancer failed to meet one of the main goals of a late-stage trial.

- Japan's Topix index closed little changed.

Gold advanced 0.4 percent to $1,287.51 an ounce, adding to Wednesday's 0.9 percent jump.

Australian shares gained 0.1 percent and the Australian dollar inched up 0.1 percent to $0.7931 after the country added 27,900 jobs in July, beating expectations for an increase of 20,000.

At the same time, that could push out the next rate increase, which would be supportive to stocks, he said.

With assistance from Adam Haigh and Robert Brand.

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