The major US stock indexes traded multidirectional on Wednesday upon the results of the meeting the Federal Reserve System.
The Dow Jones Industrial Average increased by 0.13% or 36.78 points, which allowed it to reach the mark of 28,032.38 points.
In contrast, the S&P 500 index parted with 0.46% or 15.71 points. Its level moved to the level of 3,385.49 points.
The Nasdaq Composite index also reduced its positions by 1.25 or 139.85 points, which moved to 11,050.47 points.
As analysts expected, the Federal Reserve did not change the base interest rate on federal loans which remained in the range of 0% to 0.25%. The Fed also expressed intentions to maintain this level until the end of 2023.
In addition, the regulator revised its previous forecast for the country's GDP level for the current year in the direction of its improvement, but at the same time lowered the forecast for subsequent years. According to the latest data, the state's economy will shrink by 3.7% in 2020, and over the next two years, it will grow by 4% and 3%, respectively. Recall that in the early summer of this year, the regulator indicated a possible drop in the level of GDP in 2020 by 6.5%, and in 2021 and 2022, an increase of 5% and 3.5% was indicated.
The press also received a forecast for the world economy from the Organization for economic cooperation and development. According to it, this year's indicators will improve slightly: the level of world GDP will be less in 2020 by 4.5%. Next year, we should expect an increase of 5%. Previously, the forecast claimed a reduction in the global economy to 6% and an increase in this indicator in 2021 by 5.2%.
Meanwhile, there are rather positive statistics on the sectors of the economy of the United States of America. Thus, the level of retail sales in the country over the last month of summer increased by 0.6% compared to the previous period. At the same time, analysts still expected more significant growth (around 1%).
Meanwhile, there are quite positive statistics on the sectors of the US economy. The level of retail sales in the country over the last month of summer was higher by 0.6% compared to the previous period. At the same time, analysts still expect a more significant growth of at least 1%.
Asian stocks, on the other hand, traded in negative dynamics on Thursday. The fall was also due to the results of the meeting of the US Federal Reserve. After which investors had no hopes that interest rates will be changed until 2023. Moreover, the announcement of new incentive measures also did not happen, and market participants were counting on it. Of course, this situation could not but cause disappointment in the market, which was reflected in the reduction of indicators.
On the press conference held after the meeting, the Fed Chairman noted that the latest crisis that arose against the background of the coronavirus pandemic is one of the most severe in the country's history. And in order to cope with it, considerable efforts will have to be made, to which the regulator is fully prepared. The first thing that has already been done is to preserve the entire set of support measures that were previously ratified.
The Bank of Japan also held a meeting on Wednesday which is extremely important for investors. However, the results were almost the same as in the US. As most analysts warned, the Japanese regulator did not tighten the ultra-easy monetary policy in the country. It is particularly noteworthy that the Bank of Japan positively assessed all the actions taken to combat the coronavirus infection and the crisis that it caused. Of course, the country's economy is still far from fully recovering, but the pace at which it is currently proceeding allows us to hope that the situation will improve in an accelerated time.
Japan's Nikkei 225 Index fell 0.67% Thursday morning.
China's Shanghai Composite index, on the other hand, slightly went up by 0.04%. The Hong Kong Hang Seng index did not support the positive trend and was in the red immediately by 1.6%.
South Korea's Kospi index sank 1.22%.
Australia's S&P / ASX 200 index was down 1.1%. According to the latest data, the unemployment rate in the state for the last month of summer has become less and reached 6.8%, which was previously at 7.5%. The number of jobs increased by 111,000. Experts initially estimated the worst result. As per their data, unemployment should have been 7.7%, and the growth of new jobs will be around 35,000.
Meanwhile, European stock markets experienced negative dynamics and showed a decline in almost all major indexes. The reason for the negative is also in light of the results of the meeting of the US Federal Reserve and other leading world Central banks.
The general index of large enterprises in the European region Stoxx Europe 600 sank 0.77%, pushing it to 370.27 points.
The UK FTSE 100 index declined 0.65%. Germany's DAX index was down 0.72%. France's CAC 40 index sank 0.75%. Italy's FTSE MIB index was the leader of the fall which parted 1.21%. Spain's IBEX 35 index fell 1.05%.
In addition to the unimpressive results of the meeting of the US Federal Reserve and the Bank of Japan, market participants in Europe assessed the meeting of the Bank of England, which ultimately also did not reflect the intentions to change something in the country's economy. Most economists were inclined to believe that for now it is worth refraining from any changes in monetary policy since the situation remains not completely clear and definite.
