Treasury yields jump, global stocks dip after Fed statement


The core personal consumption expenditure (PCE) price deflator, the Fed's favoured measure of consumer price rises, rose by an annual 1.4% in July, down from 1.5% in the prior month. That helped send bank stocks higher.

FINSUM: We do not have any particularly sharp insight into what the Fed will do (and we don't think anyone really does), but we do believe that a shrinking of the balance won't cause the bond market losses that many fear.

On the economic front, the National Association of Realtors said on Wednesday that existing home sales decreased 1.7 percent to a seasonally adjusted annual rate of 5.35 million units last month. Kraft Heinz fell 1.2 percent.

ASIA'S DAY: Japan's Nikkei 225 added 0.1 percent to 20,310.46 and South Korea's Kospi edged down 0.2 percent to 2,412.20. The Dow Jones industrials added 41 points, or 0.2 percent, to 22,412.

UNAPPETIZING RESULTS: General Mills tumbled 6.3 percent after the cereal maker's latest quarterly results fell short of Wall Street's expectations.

On many days, demand to borrow the notes has been several billion dollars higher than the amount of the notes the Fed was able to supply, New York Fed data shows.

Big technology stocks such as Microsoft and Google parent Alphabet came under pressure late in the session after Amazon said it would move to charging businesses in one-second increments for use of its servers.

Kraft Heinz fell 1.8 percent and NRG Energy lost 1.5 percent.

The major US stock indexes closed mostly higher Wednesday, led by gains among banks as bond yields rose. The S&P 500 Index of shares in large USA companies is at a record high, and long-term interest rates have drifted lower over the year, despite the FOMC's decisions to raise short-term rates in March and June. The precious metal was little changed at $1,318.96 an ounce.

A majority of the bank's officials (11 out of 16) see the "appropriate" level for the federal funds rate to be between 1.25 per cent and 1.5 per cent by the end of the year, the Fed's post-meeting economic projections revealed.

During the press conference, Yellen sidestepped another question about whether the massive data breach at credit rating bureau Equifax could lead to a designation of those companies as systemically important financial institutions or financial market utilities by the Financial Stability Oversight Council, thus subjecting them to heightened prudential requirements.

On the other side of the spectrum, Food group General Mills Inc (NYSE:GIS) shed nearly 6% to $52,14 as it announced a first quarter EPS (earnings per share) miss of 5 cents along with slight sales beat. In the 12-month perspective, US-dollar against euro is expected to remain at average of 1.15 USD/EUR for inflation to stabilize at over 2%. E-Mini futures for the S&P 500 rose 0.2 per cent. Brent crude, used to price global oils, gained $1.15, or 2.1 percent, to $56.29 a barrel in London.