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GLOBAL-MARKETS-Stocks hold firm, dollar slips as Fed holds rates steady

Published 28/04/2021, 20:31
Updated 28/04/2021, 20:36
© Reuters.

© Reuters.

(Recasts, adds reaction to Fed comments)
* MSCI World index up 0.3%
* Fed holds rates steady but commentary less negative
* Dollar index down 0.3%
* 10-year Treasury yield slips
* Oil futures up 1%
* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
*

By Matt Scuffham
NEW YORK, April 28 (Reuters) - World shares stayed close to
record highs while the dollar and Treasury yields slipped after
the Federal Reserve held interest rates and its monthly
bond-buying program steady, giving no sign it was ready to
reduce its support for the recovery.
Investors had been anxiously waiting to see if the U.S.
Federal Reserve would signal a tapering of its mass stimulus
programme.
In a statement released after a two-day policy meeting the
central bank did note progress on vaccines and economic
recovery, a slightly less negative view than the Fed's
description in March. "The Fed's optimism has some concerned that tapering or
higher rates may occur sooner than expected," said David Carter,
chief investment officer at Lenox Wealth Advisors in New York.
MSCI's broadest index of world shares .MIWD00000PUS
continued towards its best month of the year so far.
The index .MIWD00000PUS , which tracks shares in 49
nations, rose 1.46 points or 0.21 percent, to 707.
Some investors questioned whether gains are sustainable.
"You're seeing an irrational exuberance with money chasing
money. It seems like we could be setting ourselves up for a
correction," said Drew Horter, president and chief investment
officer of Tactical Fund Advisors in Cincinnati.
The Dow Jones Industrial Average .DJI fell 164.05 points,
or 0.48%, to 33,820.88, the S&P 500 .SPX lost 2.54 points, or
0.06%, to 4,184.18 and the Nasdaq Composite .IXIC dropped
22.96 points, or 0.16%, to 14,067.26.
The pan-European STOXX 600 index .STOXX ended largely
unchanged, with bank stocks .SX7P leading gains among the
regional sectors. The subindex ended 1.5% higher.
The dollar was on course for its first unbroken two-day run
of gains of the month - April is currently set to be its
cruellest month since last July - before slipping back after the
Fed statement.
The dollar index =USD fell 0.232%, with the euro EUR= up
0.17% to $1.2111.
Benchmark 10-year notes US10YT=RR last yielded 1.6129%,
from 1.622% late on Tuesday.
Traders were also awaiting a packed schedule of U.S.
corporate earnings after the bell and U.S. President Joe Biden's
first address before a joint Congress session, leaving them with
plenty to navigate.
Biden will address Congress and is likely to underscore his
administration's plans for infrastructure and stimulus spending.
These developments would normally be positive for stocks,
but analysts say so much economic optimism is already priced
into the equity market that it is difficult to budge equities
from current levels.


APPLE EYED
U.S. earnings later include tech and internet giants Apple
AAPL.O , Facebook FB.O and Qualcomm QCOM.O , as well as Ford
F.N . .N
Facebook is expected to report a revenue rise due to online
advertising demand during the COVID pandemic, while Apple is
expected to post a more than 32% jump in revenue, driven by 5G
phone demand.
Oil prices rose more than 1% after U.S. distillate
inventories posted a large drawdown and refining activity picked
up, boosting hopes for rising fuel demand. Brent crude futures LCOc1 settled at $67.27 per barrel, up
1.3%. U.S. crude futures CLc1 settled at $63.86 per barrel, up
1.5%.
Spot gold XAU= added 0.1% to $1,779.23 an ounce.
In the cryptocurrency market there was excitement as the
European Investment Bank said it would sell a two-year digital
bond worth 100 million euros ($120 million) on the ethereum
blockchain network. Rival cryptocurrency Bitcoin BTC=BTSP fell 0.4%.
($1 = 0.8278 euros)

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
Global markets in April and year to date https://tmsnrt.rs/3nAA3rm
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Editing by Kirsten Donovan, Steve Orlofsky and Andrea Ricci)

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