Thursday, 13 September 2012
FKLI Related News
NEW YORK, Sept 13 (Reuters) - U.S. stocks and crude oil prices rose and the dollar weakened o n T hursday as investors bet the Federal Reserve's fresh dose of monetary stimulus would improve economic growth. The U.S. central bank initiated another aggressive stimulus program, saying it will buy $40 billion of mortgage-backed debt per month until the outlook for jobs improves substantially as long as inflation remains contained.
Analysts said the Fed's move would have wide-reaching impact and was part of a global shift toward extra monetary stimulus. "You're witnessing global economic stimulus across the board," said Quincy Krosby, market strategist at Prudential Financial. "The Fed's actions are occurring in conjunction with the European Central Bank's commitments to support the euro and amid talk that China could also deliver a stimulus package." China's central bank cut interest rates in June and July and has lowered banks' reserve requirement ratio three times since late 2011 to free money for new lending. It could repeat those measures to help shore up the world economy.
Stocks made strong gains after the Fed released its statement, propelling the S&P 500 stock index to its highest close since December 2007. The prospect of even lower rates pushed investors to seek higher returns in riskier assets like stocks. The Dow Jones industrial average ended up 206.51 points, or 1.55 percent, at 13,539.86. The Standard & Poor's 500 Index was up 23.43 points, or 1.63 percent, at 1,459.99. The Nasdaq Composite Index gained 41.51 points, or 1.33 percent, to 3,155.83.
Today’s Support and Resistance for FKLI is located around 1620 and 1650 respectively.