Page 24 - ATODAY

A24
BUSINESSThursday 17 March 2016
Stocks end modestly higher after Fed holds rates steady
MARLEY JAY
AP Markets Writer
NEW YORK (AP) — U.S.
stocks rose Wednesday af-
ter the Federal Reserve left
interest rates unchanged
and forecast it will raise
rates more gradually than
it had envisioned late last
year.
The market had been low-
er before the Fed released
its statement, which high-
lighted strength in hiring
and housing, but weak-
ness in exports and con-
cerns over slower global
economic growth. The Fed
now expects to raise inter-
est rates two times this year
instead of four.
Jeremy Zirin, chief equity
strategist for UBS Wealth
Management Americas,
said the Fed and the mar-
kets now seem to have the
same view on interest rate
increases, and that means
the market may be a little
less volatile than it has
been recently. “It probably
eases investors’ minds that
we’re unlikely to see a rate
hike in April, and it prob-
ably takes June off the ta-
ble,” he said.
Lower rates help boost
economic growth by re-
ducing borrowing costs
and reducing the risk as-
sociated with expand-
ing businesses or starting
new ones. Lower rates also
make stocks look more at-
tractive to investors.
Stocks are now on track for
their fifth straight week of
gains and the Dow Jones
industrial average and

percent, to $29.51.
After the Fed’s decision,
bond prices rose sharply
and the yield on the 10-
year Treasury note fell to
1.91 percent from 1.97 per-
cent. The euro jumped to
$1.1217 from $1.1107 late
Tuesday. The dollar fell to
112.55 yen from 113.10 yen.
Mining and materials com-
panies and technology
stocks, which would all ben-
efit from a weaker dollar,
also traded higher. New-
mont Mining rose $1.18, or
4.5 percent, to $27.55 and
Alcoa added 58 cents, or
6.3 percent, to $9.74. Ap-
ple edged up $1.39, or 1.3
percent, to $105.97 and Mi-
crosoft gained 76 cents, or
The Washington news conference of Federal Reserve Chair Janet Yellen is shown on a television 1.4 percent, to $54.35.
screen on the floor of the New York Stock Exchange, Wednesday, March 16, 2016. The Fed is Metals prices were little
keeping short-term interest rates unchanged at a range between 0.25 percent and 0.5 percent, changed on the day, as
citing the risks posed by global economic and financial turmoil. they closed earlier in the
afternoon. Gold lost $1.20
(AP Photo/Richard Drew) to $1,229.80 an ounce. Sil-
Standard & Poor’s 500 in- in oil output levels. A deal benchmark for internation- ver decreased 4 cents to
dex closed at their highest — which is far from a sure al oils, rose $1.59, or 4.1 per- $15.22 an ounce. Copper
levels since the first trading thing — could help relieve cent, to $40.33 a barrel. was unchanged at $2.23 a
day of the year. a global glut that has de- Energy companies were pound.
The Dow gained 74.23 pressed oil prices. In the the top-performing sector Peabody Energy, the larg-
points Wednesday, or 0.4 U.S., oil inventories grew, on the market. Devon Ener- est coal mining company
percent, to 17,325.76. The but not as much as inves- gy gained $2.13, or 8.8 per- in the U.S., is plunging after
S&P 500 index rose 11.29 tors expected. cent, to $26.22 Southwest- it said it is delaying an in-
points, or 0.6 percent, to Benchmark U.S. crude rose ern Energy rose 67 cents, or terest payment and may
2,027.22. The Nasdaq com- $2.12 to $38.46 a barrel in 9.3 percent, to $7.90 and have to file for Chapter 11
posite index rose 35.30 New York. Brent crude, the Oneok added $1.79, or 6.5 bankruptcy protection.
points, or 0.8 percent, to
4,763.97.
Oil prices rose nearly 6 EU stock exchanges agree to $30B merger
percent and pushed en-
ergy shares sharply high- DAVID McHUGH leave the European Union March 1 that it was con-
er. Crude jumped after AP Business Writer in a referendum June 23, sidering a competing bid
a group of major energy FRANKFURT, Germany (AP) the two sides said, but con- for the London exchange.
producing nations said — The London Stock Ex- ceded there are risks to Intercontinental Exchange,
they will hold more talks change and Germany’s its business from a potential Inc., which owns the NYSE,
next month about a freeze Deutsche Boerse say they British exit. It said the tie-up had no comment on the
are merging in an all-stock would benefit from Europe- proposed LSE-Deutsche
deal that will leave the Ger- an Union efforts to create a Boerse deal. Another U.S.
man side with a majority in single capital market and rival, CME Group Inc., also
a company worth about expand the cross-border declined to comment.
$30 billion. use of stock and bond mar- In the merger deal, a U.K.-
The exchange operators kets to finance companies, based holding company
are calling it a merger of a project known as capital will be set up to acquire
equals that will accelerate markets union. They said the London Stock Ex-
their growth and offer cus- that a vote to leave would change Group PLC and
tomers more products and put the capital markets Frankfurt-based Deutsche
services — and said the union project at risk. Boerse AG. When the deal
deal is going ahead even The companies “believe is done, Deutsche Boerse
if Britain votes to leave the that the merger is well po- shareholders will hold 54.4
European Union. sitioned to serve global percent of the holding
They expect to complete customers irrespective of company and Deutsche
the combination by the the outcome of the vote” Bank CEO Karsten Ken-
first quarter of 2017. The although the outcome geter will be chief execu-
two companies together “might well affect the vol- tive. LSE chief executive
are worth about $30 billion ume or nature of the busi- Xavier Rolet is to step down
based on their stock mar- ness carried out by the
ket value Wednesday. combined group.” on completion of the deal
The deal makes sense even The owner of the New and serve as an advisor for
if British voters decide to York Stock Exchange said up to one year.