FOMC Statement & EIA Oil Report In Spotlight

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The Global Markets were seen climbing on Thursday as traders digested the Federal Reserve statement following the Fed’s two-day policy meeting. 

FOMC Statement

The Federal Open Market Committee decided to raise interest rates for the first time in almost a decade on Wednesday. The Federal Reserve Chair Janet Yellen and the Fed policymakers set a new target range for the federal funds rate at 0.25% to 0.5%, from zero to 0.25%.

The Federal Reserve policymakers forecasted an appropriate rate of 1.375 percent at the end of 2016, with a four quarter rise in the target range by next year.

“Given the economic outlook, and recognizing the time it takes for policy actions to affect future economic outcomes, the Committee decided to raise the target range for the federal funds rate,” the FOMC said in its statement released on Wednesday.

 

Energy Information Administration (EIA) Report

A report released by the energy Information Administration showed that crude oil inventories in the US climbed by 4.801 million barrels in the week ending December 11, compared to  analyst forecast of a 500,000 fall.

Crude prices were seen trading lower on Thursday after reports revealed that crude stockpiles climbed to the highest in almost eight weeks.

Futures for the North American West Texas Intermediate (WTI) traded 0.37% lower to $35.39 per barrel on the New York Mercantile Exchange at the time of writing. The European benchmark Brent crude fell 0.70% to $37.13 a barrel on the London-based ICE Futures Europe exchange.