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Stocks rebound after big Fed-related retreat

Published on NewsOK Modified: February 22, 2013 at 11:08 am •  Published: February 22, 2013
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"Better-than-expected German business confidence data helped contribute to gains," said Lee Mumford, financial sales trader at Spreadex.

In the U.S., the Dow Jones industrial average was up 0.47 percent at 13,945 while the broader S&P 500 index rose 0.49 percent to 1,509. Both indexes are well down on the five-year highs they hit earlier this week.

Their retreat from highs came after the Fed minutes showed some policymakers worried about the cost of the bank's monetary stimulus, which triggered speculation that the asset purchases would end sooner than anticipated.

The purchases, commonly known as quantitative easing, are designed to boost the U.S. economy, partly by increasing liquidity in financial markets and by keeping a lid on interest rates in the bond markets.

Earlier, the Asian heavyweight, Tokyo's Nikkei 225 index, recovered to gain 0.7 percent to 11,385.94. The region's biggest economy, China's benchmark Shanghai Composite Index fell 0.5 percent to 2,314.15. Elsewhere, Seoul's Kospi gained 0.2 percent to 2,018.89 while Hong Kong's Hang Seng shed 0.5 percent to 22,782.44.

In other financial markets, trading was fairly light.

In currency markets, the euro was down 0.15 percent at $1.3172 while the dollar was steady at 93.29 yen. In the oil markets, benchmark crude for April delivery was down 22 cents at $92.62 a barrel in electronic trading on the New York Mercantile Exchange.