Fed meeting expectations lift U.S. stocks market

08:54, August 10, 2010      

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U.S. stocks gained on Monday as investors expected the Federal Reserve to restart some stimulus measures on this week's meeting.

The Dow Jones industrial average added 45.26 points, or 0.42 percent, to 10,698.82. The Standard & Poor's 500 index gained 6.15 points, or 0.55 percent, to 1,127.79 and the Nasdaq was up 17.22 points, or 0.75 percent, to 2,305.69.

With no major economic report scheduled to release on Monday, investors were looking forward to the Federal Reserve's Tuesday meeting, hoping to get more insight about the economy. As more and more signs showed the U.S. recovery was losing steam, some investors were expecting the Fed will restart some stimulus programs to help the economy gaining momentum.

It is widely expected that the Fed will likely leave its federal funds rate near zero. Many analysts believe that the central bank may hint on whether to restart some programs such as its purchase of mortgage-backed securities or buy Treasury bonds. The central bank's programs ended earlier this year when it appeared the recovery was proceeding well.

Stocks were also boosted by upbeat data from Europe. A latest report showed German exports jumped to their highest level since late 2008, adding to evidence that economic recovery in European countries was stronger than previous anticipated.

Global markets were heavily pressured in the first half of the year as investors worried the debt crisis in some countries would cause a slowdown in the European economy, which will further hamper global economic growth.

In company news front, fast food giant McDonald's on Monday posted its biggest monthly increase in U.S. sales in more than a year. McDonald's shares rose 1.18 dollars, or 1.64 percent, to 72. 92 dollars.

Optimism on Fed meetings also helped lifted energy market. Light, sweet crude for September delivery rebounded 78 cents to settle at 81.48 dollars a barrel on the New York Mercantile Exchange. Brent crude also rose 87 cents to 81.03 dollars a barrel in London trading.

The dollar climbed from Friday's lows on Monday. In late New York trading, the euro fell to 1.3228 dollars from 1.3277 dollars late Friday, while the British pound fell to 1.5898 dollars from 1. 5967 dollars.

In other trading, the dollar rose to 85.88 Japanese yen from 85. 43 yen, up to 1.0490 Swiss francs from 1.0376 francs, but fell to 1.0268 Canadian dollars from 1.0297 Canadian dollars late Friday.

Source:Xinhua

(Editor:黄蓓蓓)

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