BECKHAM
22-08-2013, 12:52 PM
U.S. stock futures on Thursday traded higher after the Federal Reserve made it known that its top officials were leaning toward phasing out its massive stimulus program.
Dow Jones industrial average index futures added 0.3%, Standard & Poor's 500 index futures rose 0.4% and Nasdaq index futures were up 0.6%.
On Wednesday, the Dow fell 0.7% to finish at 14,897.55. The S&P 500 lost 0.6% to 1,642.80. The Nasdaq lost 0.4% to 3,599.79.
The Fed released minutes of its July policy meeting Wednesday that showed most members want to slow down the pace of a massive bond-buying program. The U.S. central bank has been purchasing $85 billion of financial assets a month, which was intended to push down interest rates and spur borrowing and growth.
The Fed minutes didn't indicate when the "tapering" of purchases might begin, leaving analysts to guess.
"Most analysts still expect tapering to start in September, or at the bare minimum a September announcement and implementation through October and November," said Stan Shamu, market strategist of IG in Melbourne, Australia.
Markets in Europe traded higher following the release of data out of the euro-zone that showed the region's economic recovery was gaining momentum.
Stocks in mainland China rose before falling back after a private manufacturing survey showed an unexpected growth spurt in factory output there. HSBC Corp. said the preliminary version of its monthly purchasing managers' index for August rose to 50.1 from July's 47.7. Numbers above 50 indicate an expansion in activity. The Shanghai composite index fell 0.3% to 2,076.10.
Elsewhere in Asia, Japan's Nikkei 225 index fell 0.4% to 13,365.17.
Dow Jones industrial average index futures added 0.3%, Standard & Poor's 500 index futures rose 0.4% and Nasdaq index futures were up 0.6%.
On Wednesday, the Dow fell 0.7% to finish at 14,897.55. The S&P 500 lost 0.6% to 1,642.80. The Nasdaq lost 0.4% to 3,599.79.
The Fed released minutes of its July policy meeting Wednesday that showed most members want to slow down the pace of a massive bond-buying program. The U.S. central bank has been purchasing $85 billion of financial assets a month, which was intended to push down interest rates and spur borrowing and growth.
The Fed minutes didn't indicate when the "tapering" of purchases might begin, leaving analysts to guess.
"Most analysts still expect tapering to start in September, or at the bare minimum a September announcement and implementation through October and November," said Stan Shamu, market strategist of IG in Melbourne, Australia.
Markets in Europe traded higher following the release of data out of the euro-zone that showed the region's economic recovery was gaining momentum.
Stocks in mainland China rose before falling back after a private manufacturing survey showed an unexpected growth spurt in factory output there. HSBC Corp. said the preliminary version of its monthly purchasing managers' index for August rose to 50.1 from July's 47.7. Numbers above 50 indicate an expansion in activity. The Shanghai composite index fell 0.3% to 2,076.10.
Elsewhere in Asia, Japan's Nikkei 225 index fell 0.4% to 13,365.17.