How are energy investors positioned?
* U.S. Treasury yields rise; gold slips
* Oil prices cool after Saudi pledge on production
(Recasts with Fed interest rate decision and market reaction)
By Saqib Iqbal Ahmed
NEW YORK, Sept 18 (Reuters) - Wall Street stocks slipped on
Wednesday after the U.S. Federal Reserve gave mixed signals
about what may happen next after it cut interest rates by a
quarter of a percentage point for the second time this year in a
widely expected move.
The dollar rose against the yen and the euro, while U.S.
Treasury yields edged higher in choppy trading.
In lowering the benchmark overnight lending rate to a range
of 1.75% to 2.00% on a 7-3 vote, the Fed's policy-setting
committee nodded to ongoing global risks and "weakened" business
investment and exports. The Fed said continued growth and strong hiring are "the
most likely outcomes," but nevertheless cited "uncertainties"
about the outlook and pledged to "act as appropriate" to sustain
the expansion.
The rate cut fell short of the more aggressive reduction in
borrowing costs that President Donald Trump had demanded.
"The main concern is there might not be another cut, and
that's why you had a little bit of a selloff," said Alan Lancz,
president at Alan B. Lancz & Associates, in Toledo, Ohio. "But
it's almost like selling on good news. They left the door open
for more cuts. It's a really divided Fed right now."
The Dow Jones Industrial Average .DJI fell 164.4 points,
or 0.61%, to 26,946.4, the S&P 500 .SPX lost 21.57 points, or
0.72%, to 2,984.13, and the Nasdaq Composite .IXIC dropped
83.66 points, or 1.02%, to 8,102.35.
The MSCI world equity index .MIWD00000PUS , which tracks
shares in 47 countries, fell 0.51%.
The dollar index .DXY , which tracks the greenback against
a basket of other currencies, was up 0.25% to 98.502.
U.S. Treasury yields crept higher in volatile trading after
the rate decision, with benchmark 10-year notes US10YT=RR last
up 10/32 in price to yield 1.763%.
Oil prices cooled as Saudi Arabia's pledge to quickly
restore production eased worries over supply following a weekend
attack on Saudi oil facilities. Tension in the Middle East remained elevated, however. Saudi
Arabia on Wednesday displayed remnants of what it described as
Iranian drones and cruise missiles used in the attack, calling
them "undeniable" evidence of Iranian aggression. Trump ordered
a major increase in sanctions on Iran on Wednesday, following
repeated U.S. assertions that Iran was behind the attack.
U.S. crude CLc1 fell 2.48% to $57.87 per barrel and Brent
LCOc1 was last at $63.33, down 1.89% on the day.
Gold prices slipped and spot gold XAU= was down 0.25% at
$1,498.439 an ounce.
Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
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