US stocks rebound as Fed meeting begins

New York, Jan 27 (IANS) US stocks bounced back amid oil recovery in the morning session on Tuesday, as Wall Street eyed the Federal Reserve’s two-day policy meeting.

At midday, the Dow Jones Industrial Average jumped 242.16 points, or 1.52 percent, to 16,127.38. The S&P 500 gained 21.63 points, or 1.15 percent, to 1,898.71. The Nasdaq Composite Index was up 38.38 points, or 0.85 percent, to 4,556.87.

The Federal Open Market Committee began its monetary policy meeting on Tuesday and will release a statement on Wednesday afternoon.

Analysts predicted that the Fed won’t take any rate action at this meeting amid oil weakness. However, investors will look into the statement for further clues on the economic environment and the future path of tightening.

The volatility in oil prices has dominated market sentiment recently. Oil prices, which have plummeted about 17 percent since the beginning of the year, jumped about 4 percent around midday Tuesday.

On Monday, oil prices tumbled over 5 percent on profit taking after Friday’s surge, as Iraq announced record-high oil production.

On the economic front, US consumer confidence also came out positive. The Conference Board Consumer Confidence Index now stands at 98.1 in January, up from 96.3 in December and above market consensus of 96.0.

In corporate news, shares of 3M surged over 4 percent around midday Tuesday after reporting quarterly results that beat market estimates.

On Monday, US stocks suffered big losses, as a renewed decline in oil prices weighed on Wall Street ahead of the Fed’s monetary policy meeting.

US dollar dips ahead of Fed statement

The US dollar decreased against most major currencies on Tuesday as investors were awaiting the Federal Reserve statement due out Wednesday.

In late New York trading, the euro rose to $1.0849 from $1.0837 in the previous session, while the dollar bought 118.48 Japanese yen, lower than 118.49 yen of the previous session.

Chinese shares open higher

Chinese stocks opened higher on Wednesday, with the benchmark Shanghai Composite Index up 0.23 percent at 2,756.08 points.

The smaller Shenzhen index opened 0.44 percent higher at 9,525.61 points, Xinhua news agency reported.

The ChiNext Index, tracking China’s NASDAQ-style board of growth enterprises, gained 0.16 percent to open at 1,997.32 points.

Tokyo shares open higher

Tokyo shares opened the trading Wednesday remarkably higher as investors’ sentiment was supported by rallies in the overnight US stocks market and oil prices.

At 9.15 a.m., the 225-issue Nikkei Stock Average jumped 373.24 points, or 2.23 percent, from Tuesday to 17,082.14, according to Xinhua.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 32.23 points, or 2.37 percent, to 1,392.46.

Key Indian share market indices open higher

A significant jump in global crude oil prices and positive cues from Asia markets, save China, helped key Indian equity indices open in the green on Wednesday, after a trading holiday the day before on account of the Republic Day.

The sensitive index (Sensex) of the Bombay Stock Exchange (BSE) opened at 24,643.13, against the previous close at 24,485.95 points.

Soon after, the 30-share index it was ruling at 24,511.28 points, with a gain of 25.33 points, or 0.10 percent.

At the National Stock Exchange (NSE), the broader 50-share Nifty that had closed at 7,436.15 points on Monday, was ruling at 7,452.35 points, up 16.20 points or 0.22 percent.

The positive sentiments emanated mainly from the developments in the energy markets.

“Strong bounce back in the oil prices coupled with increased buying interest across some of the heavyweights ahead of earnings season led US markets close with over 1 percent gains,” said Angel Broking in an analysis, ahead of the opening bell in the Indian markets.

Most European indices had also moved up, with the shares of global oil players like British Petroleum and Royal Dutch Shell, gaining some 1 percent on Tuesday, said the brokerage and added Indian markets had also ended higher the previous day but unable to retain early gains

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