|
Fed holds interest rates unchanged for eighth meeting in row
The Federal Reserve voted to hold interest rates unchanged for the eighth meeting in a row at below 5.5%, matching expectations.
Now investors await Fed chair Jerome Powell's subsequent press conference to gather clues on the Fed's upcoming policy moves.
US crude stocks drop by more than expected
Official data from the Energy Information Administration showed US crude stocks dropped by 3.4 million barrels in the week ending July 26, the fifth weekly decline in a row, passing estimates of a 1.6 million barrels decline.
According to the data, total stocks fell to 433.2 million barrels, the lowest since early February.
Wall Street spikes before Fed's decision, NASDAQ rallies over 2%
US stock indices rose on Wednesday as the tech sector rebounded with the release of the latest batch of corporate earnings results, while eyes shift towards the Fed.
Later today, the Federal Reserve will announce plans on interest rates, expected to hold them unchanged, with markets now waiting for further signals on the future of US monetary policies.
On trading, Dow Jones rose 0.7%, or 282 points as of 17:47 GMT to 41,025, while S&P 500 rose 1.6%, or 87 points to 5523, as NASDAQ rallied 2.4%, or 409 points to 17,557.
Oil prices surge 3% after Haniyeh's assasination in Tehran
- Oil rebounds in the intraday levels
- Oil holds ground above eight-week lows
- Geopolitical tensions flare after Hamas leader’s assassination
- Iranian Revolutionary Guards accuse Israel of assassination
- US crude stocks decline
- Oil about to mark monthly loss on Chinese Demand
Global oil prices rallied 3% on Wednesday, holding its ground above eight-week lows and on track for the first profit in four days as geopolitical tensions flared in the Middle East after the assassination of Hamas leader Ismael Haniyeh.
The Iranian Revolutionary Guards accused Israel of being behind the kill, with Iranian supreme leader Khamenei pledging a response.
Prices are also boosted by a drop in US crude stocks for the fifth week in a row in a sign of strong demand in the world’s largest fuel consumer.
Prices
US crude rose 3.1% today to $77.54 a barrel, with a session-low at $75.21.
Brent rallied 2.75% today to $80.73 a barrel, with a session-low at $78.50.
On Tuesday, US crude slid 0.9%, the third loss in a row, marking eight-week lows at $74.64.
Brent fell 0.7%, the third loss in a row, marking June 5 lows at $78.00 a barrel.
The recent wave of losses came amid concerns about weakening Chinese demand.
Haniyeh’s Assassination
Hamas announced today the assassination of its leader Ismael Haniyeh by an Israeli airstrike in Tehran, with Iranian authorities confirming the incident.
Hamas said he was killed in his Tehran residence after attending the ceremony of inaugurating the new Iranian president.
The incident sparked concerns of the conflict growing more widespread and intense, which might impact oil supplies in the Middle East.
US Stocks
Official data from the Energy Information Administration showed US crude stocks dropped by 3.4 million barrels in the week ending July 26, the fifth weekly decline in a row, passing estimates of a 1.6 million barrels decline.
According to the data, total stocks fell to 433.2 million barrels, the lowest since early February.
Monthly Trades
Across July, oil prices are down 5% so far, on track for the third monthly decline in the last four months amid concerns about weakening fuel demand in China.