SHANGHAI, Sept. 18 (SMM) – US Fed announced to keep interest rate unchanged on the Sept.’s FOMC meeting overnight, saying that inflation rate may fall further as recent global economic and financial situation may curb economic activities. Besides, the Fed said that US economy is expanding mildly and employment increases steadily with slipping unemployment rate. US dollar thus ended down 1%. Precious metal prices surged. US stocks dropped from highs.
Economic figures were mixed overnight. US initial jobless claims number declined to 264,000 during the week ending Sept. 12, an 8-week low, and the number without being seasonal adjusted hit a fresh low since 1973. Aug. home starts and building permits beat forecast. Sept. Philadelphia Fed manufacturing index fell 6, the first slip since February 2014 and recording a fresh low since February 2013.
Chinese yuan has stabilized and there is no basis for large amount of outflow of yuan. The yuan against dollar has depreciated a lot since Aug., leaving limited room for further depreciation. Moreover, China’s real economy will not allow large outflow of yuan.
US dollar index slumped 0.96% to 94.417. US three major stocks fell from highs. European and US stocks were mixed. US crude oil for Oct. delivery slid 0.49% to 46.9. LME base metals swung.