Business news live: Indian benchmark indices open higher on positive global cues

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Fed signals bond-buying taper coming ‘soon,’ rate hike shifts to 2022

The Federal Reserve on Wednesday cleared the way to reduce its monthly bond purchases “soon” and signalled interest rate increases may follow more quickly than expected, with nine of 18 U.S. central bank policymakers projecting borrowing costs will need to rise in 2022, Reuters reported.

The actions, which were included in the Fed’s latest policy statement and separate economic projections, represent a hawkish tilt by a central bank that sees inflation running this year at 4.2%, more than double its target rate, and is positioning itself to act against it, the report noted.

Indian benchmark indices open higher on positive global cues

Indian indices opened higher today on positive global cues. Sensex opened at 59,358.18, up 430.85 points, while Nifty opened at 17,670.85, up 124.20 points.

On Wednesday, the 30-share BSE Sensex slipped 77.94 points or 0.13% to close at 58,927.33, while the broader NSE Nifty declined 15.35 points or 0.09% to 17,546.65.

Asian shares gain but Evergrande jitters keep investors on edge

Asian shares moved higher today, supported by some positive news from struggling developer China Evergrande Group, a Reuters report noted.

However, investors remained on edge about Evergrande’s future, with a major test to come later today when $83.5 million in dollar-bond interest payments are due.

The Hong Kong benchmark rose 1.6%, boosting MSCI’s broadest index of Asia-Pacific shares outside Japan, which gained 0.64%. Elsewhere, Chinese blue chips gained 0.74%, Australia’s benchmark rose 1.04%, and Korea’s Kospi fell 0.6%.

Wall Street ends higher as Fed signals bond-buying taper soon

The three major U.S. stock indexes rose 1% on Wednesday as investors mostly took in stride the latest signals from the Federal Reserve, including clearing the way for the central bank to reduce its monthly bond purchases soon, Reuters reported.

The S&P 500 registered its biggest daily percentage gain since July 23.

The Dow Jones Industrial Average rose 338.48 points, or 1%, to 34,258.32, the S&P 500 gained 41.45 points, or 0.95%, to 4,395.64 and the Nasdaq Composite added 150.45 points, or 1.02%, to 14,896.85.

 

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