U.S. Stocks Higher Ahead of Fed Meeting, Mixed New York Region Survey

Nichole Harper
17 Jun, 2013
New York City

U.S. stocks gained and market indexes added more than 1% as investors awaited Fed meeting beginning tomorrow. Also, investors looked for clues of any policy announcements from Group of Eight meeting in Northern Ireland.

[R]10:30 AM New York – U.S. stocks gained and market indexes added more than 1% as investors awaited Fed meeting beginning tomorrow. Also, investors looked for clues of any policy announcements from Group of Eight meeting in Northern Ireland.[/R]

Market indexes on Wall Street in early trading jumped nearly 1% ahead of a 2-day Fed meeting beginning tomorrow.

Market sentiment has been adjusting to the talks of Fed tapering its $85 billion a month government bond purchase program.

The S&P 500 index increased 0.9% to 1,642.57 and the Nasdaq Composite Index added 1.1% to 3,463.28.

The New York Fed’s Empire State index increased more than expected but the forward looking orders index fell.

The Empire State general business conditions index rose 7.84 in June from minus 1.43 in May. A reading higher than zero indicates growth.

The forward-looking new orders index declined to minus 6.69 from minus 1.17 and inventories index tumbled to 11.29 from 7.95 in May.

European Markets

European markets jumped after telecom stocks led the gainers after a report suggested AT&T made merger overtures to Spain based Telefonica SA. The company denied the news report in El Mundo newspaper.

France Telecom, Deutsche Telecom and Vodafone also traded higher as mobile telephone companies switch focus to adding more subscribers for land lines, broad band Internet access and TV services.

In London, FTSE 100 index increased 0.8% and in Frankfurt the DAX increased 1.5%. In Paris, CAC 40 index soared 1.8%.

Asian Markets

Asian markets also traded higher after weakness in the last two weeks of trading.

In Tokyo, Nikkei rebounded 2.7% in thin trading and Japan Tobacco soared 5% after it said domestic cigarette sales increased 0.4% in May.

In Hong Kong, Hang Seng index increased 1.2% and in Mumbai Sensex added 0.8% after the Reserve Bank of India left its benchmark rate unchanged at 7.5% and also held the cash reserve requirement on the recent plunge in rupee.