U.S. Stocks Gain For Second Day with Fed Decision

U.S. stocks rallied for a second day with bulls continuing to buy the dips. Yesterday markets had closed in the green with the Federal Reserve’s decision on continuing stimulus till later. China Evergrande Group’s debt concerns also started to die down. 

All major indices in the country rallied with tech, energy and financial stocks moving up.

Stoxx Europe is up by 0.93%

Dow Jones is up by 1.64%

NASDAQ is up by 1.02%

Bank Of England Warns About Inflation Rise Above 4%

The Bank of England on Thursday left the main interest rate unchanged at a record low of 0.1% and downgraded the economic outlook for the third quarter of this year. It also decided to stick to its asset purchase target of £875 billion (Rs 88 lakh crores). The central bank revised down U.K GDP growth outlook to 2.1%, down from 2.9% for the third quarter. The BOE expects consumer prices likely to rise above 4% this year.

U.S Jobless Claims Rises Again

The U.S Initial Jobless Claims that measures the number of people who applied for unemployment insurance rose unexpectedly for the last week. Labor Department data on Thursday showed that the claims rose to 351,000 in the week ended September 18. This is higher than the 28 lakh claims made in the week ended September 11.

Turkish Central Bank Unexpectedly Cuts Main Interest Rate

Turkish Central Bank unexpectedly announced the main interest rate cut by one percentage point on Thursday, replying to President Erdogan’s demand for lower borrowing rates to boost growth. The monetary committee cut the rate from 19% to 18% even though the annual inflation rate is at 19.25%. Generally higher interest rates are used to control inflation, but the President asked for the opposite.  He is taking the risk to bring back the growth on track and thereby regain the falling popularity

Don’t Panic, U.K Not Heading Back To 1970s: Junior Minister

A U.K junior minister said on Thursday that the consumers should not panic buy products as Britain is not going into a 1970s-style “winter of discontent” of strikes and power shortages. The Bank of England said inflation would temporarily rise above 4% for the first time in a decade later this year, largely due to energy and goods prices.

Roku Jumps Guggenheim’s Buy Call

The stocks of Roku traded more than 4% in NASDAQ on Thursday after Guggenheim announced a buy call on it with a target of $395. The target price is 22% above Wednesday’s closing price. Roku has an advertising business and also licenses its hardware and software to other companies.

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