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GLOBAL MARKETS-Stocks hit high after record run; Fed holds rates steady

Published 02/11/2017, 05:45 am
Updated 02/11/2017, 05:50 am
© Reuters.  GLOBAL MARKETS-Stocks hit high after record run; Fed holds rates steady
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* Optimism on earnings, global growth boost shares

* European stocks at two-year high

* Fed holds rates steady; new chair nominee on deck

* Oil prices hit highest level since mid-2015 (Updates with Fed statement)

By Chuck Mikolajczak

NEW YORK, Nov 1 (Reuters) - World stock markets climbed to a fresh high on Wednesday, boosted by solid corporate earnings, while yields on U.S. Treasuries were little changed after the Federal Reserve held interest rates steady.

The Federal Reserve kept rates unchanged on Wednesday and pointed to solid U.S. economic growth and a strengthening labor market while downplaying the impact of recent hurricanes, a sign it is on track to lift borrowing costs again in December. gauge of stock markets held gains in the wake of the announcement, although the index was off a high hit earlier in the session. U.S. Treasury yields were little changed after the announcement.

Next up for the central bank is the expected announcement on Thursday for a new Fed chair nominee from U.S. President Donald Trump. Market participants widely expect it to be Fed Governor Jerome Powell, who is considered more dovish on interest rates than some other candidates and thus relatively stock-market friendly. pending announcement regarding the new chair seems to be overshadowing most everything," said Michael Arone, Chief Investment Strategist at State Street Global Advisors in Boston.

"The overarching uncertainty around the decision and then potentially the news of the new chairperson, equities are probably kind of hedging their bets, so to speak."

Data on Wednesday showed the U.S. economy remained on solid footing ahead of Friday's payrolls report. Although a measure of factory activity lost ground as hurricane-related supply disruptions faded, another report showed private sector hiring surged. of Japanese multinational Sony 6758.T soared as much as 12.3 percent to a nine-year high after the electronics and entertainment firm forecast its best-ever annual profit. U.S. listed shares of the stock were up 0.7 percent at $43.70. Dow Jones Industrial Average .DJI rose 52.54 points, or 0.22 percent, to 23,429.78, the S&P 500 .SPX gained 5 points, or 0.19 percent, to 2,580.26 and the Nasdaq Composite .IXIC dropped 15.08 points, or 0.22 percent, to 6,712.59. 10-year notes US10YT=RR last rose 1/32 in price to yield 2.3721 percent, from 2.376 percent late on Tuesday. the closing bell in the United States, earnings are expected from Facebook FB.O , which was up 0.87 percent as the biggest boost to the S&P 500. On Thursday, earnings are expected from iPhone maker Apple Inc AAPL.O .

Of 326 companies in the S&P 500 that have reported results, 73 percent topped analyst expectations, compared with 72 percent over the past four quarters, according to Thomson Reuters data. The earnings growth estimate for the quarter is currently at 7 percent.

The pan-European FTSEurofirst 300 index .FTEU3 rose 0.43 percent after touching its highest level since August 2015 and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.32 percent. rise in oil prices to their highest level since mid-2015 also served to boost energy names. Oil prices retreated, however, after U.S. government data showed that the latest weekly draw in domestic crude stocks was not as big as an industry trade group had reported. crude CLcv1 fell 0.22 percent to $54.26 per barrel and Brent LCOcv1 was last at $60.41, down 0.87 percent on the day.

The S&P energy index .SPNY gained 0.9 percent, on track for the best day since late September, while in Europe basic resources stocks .SXPP jumped 2.7 percent.

The dollar index .DXY rose 0.26 percent, with the euro EUR= down 0.25 percent to $1.1615. Global assets in 2017

http://reut.rs/1WAiOSC Global currencies vs. dollar

http://tmsnrt.rs/2egbfVh Global bonds dashboard

http://tmsnrt.rs/2fPTds0 Emerging markets in 2017

http://tmsnrt.rs/2ihRugV

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