World stocks gained and also the dollar fell on Friday after Federal Reserve Chairman Ben Bernanke left the doorway open for future US economic stimulus.
Speaking at the Fed's annual escape in Jackson Hole, Wyoming, Bernanke did not offer new measures to increase the economy but said it was critical for the economy's health to decrease long-term joblessness.
US stocks jumped, reversing initial losses of as much because 2%, while Treasuries, whose yields are at near-historic lows, cut initial increases.
Bernanke said the central bank's policy panel would meet for two days in September rather than one to discuss additional monetary stimulus, offering some hope to investors for further action in the future.
"He didn't give the market the green light for QE3 -- he also didn't provide the market the red light for QE3, " said Kevin Caron, market strategist from Stifel, Nicolaus in Florham Park, New Jersey, referring to the Fed's quantitative reducing program.
"By implying that inflation is viewed as not a concern, it leaves the possibility for something in the future, " he added.
The speech follows several turbulent weeks for markets, along with investors facing concerns about another US recession and escalating euro zone financial debt troubles, as well as a downgrade of the top-tier US credit score.
Analysts said the very choppy trade in many markets after Bernanke spoke reflected the concern concerning the US economy, as well as a realization that US interest rates will stay at record lows for a long time.
World stocks as measured by the MSCI world equity index were upward 0. 8%, but are down about 11% since the start of the actual month, while ICE Brent for October delivery settled at $111. 36 the barrel, gaining 74 cents.
Bernanke's speech last year laid the groundwork for that Fed's $600 billion bond-buying program to revive the economy under the rubric "QE2" for that Fed's second round of stimulus, or quantitative easing.
The dollar gained about the euro after the speech but later shed those gains, with the dinar last up 0. 8% at $1. 4489.
The dollar was also lower 0. 6% against a basket of currencies.
An increase of money provide, such as the QE2 program, tends to erode the value of the dollar in accordance with other currencies.
On Wall Street, the Dow Jones industrial average was upward 76. 52 points, or 0. 69%, at 11, 226. 34. The Regular & Poor's 500 Index was up 10. 89 points, or 0. 94%, from 1, 170. 16. The Nasdaq Composite Index was up 46. 03 factors, or 1. 90%, at 2, 465. 66.
The FTSEurofirst 300 ended your day down 0. 7% at 919. 03 points
WALL STREET PREPARES FOR IRENE
Wall Street scrambled to boost cash in case Hurricane Irene causes major disruption in trading for a large number of traders who live in the New York, New Jersey and Connecticut.
The actual repurchase market, a major source of cash for Wall Street to account trades and operations, showed an increase in interest rates on loans which mature on Monday, a sign markets are worried there could be disruptions - however temporary - due to the hurricane.
Interest rates on loans backed by Treasury bonds that end on Monday rose by several hundredths of a%age point from late Thurs to about 0. 08% in the $1. 6 trillion repurchase market.
In america Treasury market, benchmark 10-year Treasury notes were trading 12/32 higher in cost to yield 2. 19%, down from 2. 21% late on Thursday.
"I think that seeing Treasuries come off a bit here, you're seeing some bets being unwound in the market, " stated Rich Bryant, a Treasury trader at MF Global Securities in New You are able to.
Gold rose after days of liquidation pushed bullion down from record levels this week. Spot gold was up 2. 2% at $1, 808. sixty an ounce.
On the New York Mercantile Exchange, crude for October delivery rose for any second day and settled at $85. 37 a barrel, gaining 7. 00 pennies. Traders positioned ahead of the arrival of Irene, as oil terminals, refineries, pipelines along with other energy infrastructure prepared for the stormy weekend.
Speaking at the Fed's annual escape in Jackson Hole, Wyoming, Bernanke did not offer new measures to increase the economy but said it was critical for the economy's health to decrease long-term joblessness.
US stocks jumped, reversing initial losses of as much because 2%, while Treasuries, whose yields are at near-historic lows, cut initial increases.
Bernanke said the central bank's policy panel would meet for two days in September rather than one to discuss additional monetary stimulus, offering some hope to investors for further action in the future.
"He didn't give the market the green light for QE3 -- he also didn't provide the market the red light for QE3, " said Kevin Caron, market strategist from Stifel, Nicolaus in Florham Park, New Jersey, referring to the Fed's quantitative reducing program.
"By implying that inflation is viewed as not a concern, it leaves the possibility for something in the future, " he added.
The speech follows several turbulent weeks for markets, along with investors facing concerns about another US recession and escalating euro zone financial debt troubles, as well as a downgrade of the top-tier US credit score.
Analysts said the very choppy trade in many markets after Bernanke spoke reflected the concern concerning the US economy, as well as a realization that US interest rates will stay at record lows for a long time.
World stocks as measured by the MSCI world equity index were upward 0. 8%, but are down about 11% since the start of the actual month, while ICE Brent for October delivery settled at $111. 36 the barrel, gaining 74 cents.
Bernanke's speech last year laid the groundwork for that Fed's $600 billion bond-buying program to revive the economy under the rubric "QE2" for that Fed's second round of stimulus, or quantitative easing.
The dollar gained about the euro after the speech but later shed those gains, with the dinar last up 0. 8% at $1. 4489.
The dollar was also lower 0. 6% against a basket of currencies.
An increase of money provide, such as the QE2 program, tends to erode the value of the dollar in accordance with other currencies.
On Wall Street, the Dow Jones industrial average was upward 76. 52 points, or 0. 69%, at 11, 226. 34. The Regular & Poor's 500 Index was up 10. 89 points, or 0. 94%, from 1, 170. 16. The Nasdaq Composite Index was up 46. 03 factors, or 1. 90%, at 2, 465. 66.
The FTSEurofirst 300 ended your day down 0. 7% at 919. 03 points
WALL STREET PREPARES FOR IRENE
Wall Street scrambled to boost cash in case Hurricane Irene causes major disruption in trading for a large number of traders who live in the New York, New Jersey and Connecticut.
The actual repurchase market, a major source of cash for Wall Street to account trades and operations, showed an increase in interest rates on loans which mature on Monday, a sign markets are worried there could be disruptions - however temporary - due to the hurricane.
Interest rates on loans backed by Treasury bonds that end on Monday rose by several hundredths of a%age point from late Thurs to about 0. 08% in the $1. 6 trillion repurchase market.
In america Treasury market, benchmark 10-year Treasury notes were trading 12/32 higher in cost to yield 2. 19%, down from 2. 21% late on Thursday.
"I think that seeing Treasuries come off a bit here, you're seeing some bets being unwound in the market, " stated Rich Bryant, a Treasury trader at MF Global Securities in New You are able to.
Gold rose after days of liquidation pushed bullion down from record levels this week. Spot gold was up 2. 2% at $1, 808. sixty an ounce.
On the New York Mercantile Exchange, crude for October delivery rose for any second day and settled at $85. 37 a barrel, gaining 7. 00 pennies. Traders positioned ahead of the arrival of Irene, as oil terminals, refineries, pipelines along with other energy infrastructure prepared for the stormy weekend.