AFP
London
European stock markets steadied yesterday as oil prices rebounded and investors awaited the outcome of the US Federal Reserve meeting.
London’s benchmark FTSE 100 index rose 0.07% to 6,336.48 points, while in Paris the CAC 40 climbed 0.46% to 4,111.91 points, but in Frankfurt the DAX 30 edged down 0.02 points to 9,544.43 points.
“European equity markets were fairly mixed in today’s trading session, as investors remain cautious ahead of the first round of the Presidential elections in Greece and the US FOMC rate decision,” said Myrto Sokou, an analyst at Sucden Research.
Equities benefited from a pause in the plunge of the ruble that had sent shockwaves though European markets on Monday and Tuesday as the Russian currency shed 10% and
20% of its value in two trading days.
Russia announced measures to support the financial system and stepped up intervention to head off a run on the currency.
Eyes were on the outcome of the Fed’s two-day meeting, with dealers looking for some guidance over monetary policy amid growing speculation that the central bank will raise interest rates by the middle of 2015.
The prospect of a tighter US monetary policy helped push up the dollar, with the euro sliding to $1.2407 from $1.2498 late in New York on Tuesday. The British pound also lost ground to the dollar and was at $1.5655.
Wall Street moved higher yesterday following a weak US inflation report, and then moved higher after the US and Cuba made a historic breakthrough in their Cold War stand-off, moving to revive diplomatic ties and ease a five-decade US trade embargo against its communist foe.
The Dow Jones Industrial Average stood at 17,168.55 points in midday trade, a gain of 0.58% from Tuesday’s close.
The broad-based S&P 500 advanced 1.11% to 1,994.63, while the tech-rich Nasdaq Composite Index rose 0.68% to 4,578.68.
The ruble opened down around 3.0%, but rebounded after to 61.80 to the dollar from 67.88 on Tuesday evening. It rose to 78 to the euro from 85.15.
The rise came after Prime Minister Dmitry Medvedev voiced confidence that Moscow can contain the crisis and the finance ministry said it was selling around $7bn at its disposal to prop up the ruble.
Russia’s central bank also announced a series of technical measures to ease access to foreign currency and shore up banks.
The Russian central bank had earlier raised its key interest rate to 17.0% from 10.5% in a bid to prop up the currency which touched lows Tuesday that left the ruble losing some 60% of its value this year.
