Morning Notes

22/09/2015 Argonaut Morning Note

U.S. stocks pared earlier gains in afternoon trading, dragged down by biotechnology stocks. Other than biotech stocks in the U.S., markets generally steadied after the Fed's decision last week to keep interest rates at record lows sparked a global selloff amid fears about the fragile state of the global economy. Although rock-bottom rates have helped fuel years of rising stocks since the financial crisis, the Fed's reluctance to lift borrowing costs was seen as a reminder that growth in the U.S. and elsewhere remains vulnerable to a slowdown in China. The Dow added 126 points, or 0.8%, to 16,510 while the S&P 500 gained 9 points, or 0.5%, to 1,967.

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21/09/2015 Argonaut Morning Note

US stocks have fallen sharply in the wake of the Federal Reserve's decision against raising interest rates because of worries about slowing global economic growth. Analysts said the Fed's decision on Thursday to keep benchmark rates at zero was concerning because it implied that headwinds facing the global economy are stronger than thought. "The fact that the Fed did not raise rates prolongs the uncertainty and the stock market does not like uncertainty," said Bill Lynch, director of investment, Hinsdale Associates. "We just face more of the same in terms of this waiting game as to when they'll finally pull the trigger."

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18/09/2015 Argonaut Morning Note

U.S. stocks wavered, erasing earlier gains, as investors welcomed continued easy-money policies but remained cautious as central bank officials noted concerns about global market turmoil. The Federal Reserve left short-term interest rates unchanged after weeks of market-churning debate at the central bank about whether it was time to end an era of near-zero rates. Many investors remained cautious, however, as central bank officials noted concerns about weakness in global economies and markets. Investors around the world have been closely watching the central bank's decision on short-term rates, which have been near zero since the financial crisis in a bid to stoke growth and borrowing. That stance has helped propel a six-year-long bull market in stocks and bonds. But expectations of a rate increase on Thursday had diminished in recent weeks amid a stumble in global financial markets. Stocks rose this week on anticipation that the Fed would stand firm.

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17/09/2015 Argonaut Morning Note

US stocks have risen strongly for the second straight session ahead of the Federal Reserve's decision on whether to raise interest rates for the first time in nine years. Weighing whether to finally break from its easy money stance dating to the 2008-2009 crisis, the Fed is scheduled to announce its rate decision at 1800 GMT Thursday (0400 on Friday AEST). Michael James, managing director of equity trading at Wedbush Securities, said traders increasingly believe the Fed either will not hike rates, or accompany an increase with dovish commentary suggesting additional increases are not planned anytime soon. Petroleum-linked stocks rallied strongly on a nearly six per cent climb in US oil prices.

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16/09/2015 Argonaut Morning Note

U.S. stocks rallied as investors awaited a U.S. interest-rate decision due later this week. Shares rose as investors tried to position themselves ahead of a two-day meeting of the U.S. Federal Reserve, slated to start on Wednesday, that could lead to the first interest-rate increase in almost a decade. About 46% of business and academic economists surveyed by The Wall Street Journal in the week to last Friday predicted the Fed's first rate increase would come at the September. The Dow rose 1.4% to 16,600 and the S&P 500 gained 1.3% to 1,978.

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