An initial stock market surge after the US Federal Reserve raised interest rates for the first time in nearly a decade ran out of steam after an opening fall on Wall Street.
European shares managed to end the day in positive territory, but closed off their best levels as the US central bank sanctioned a 0.25% rise in borrowing costs, signalling an end to the low interest rate environment which has prevailed since the financial crisis in 2008.
On the whole, investors welcomed the rise because it removed the uncertainty that had been clouding the markets ever since the Fed unexpectedly kept rates on hold in September. They were also placated by Fed chair Janet Yellen’s comments that any future rises would be gradual and dependent on future economic data.
The FTSE 100 finished up 41.35 points or 0.68% at 6102.54, having climbed to 6,160 earlier in the day. Germany’s Dax ended up 2.57% at 10,738 after reaching 10,829, while France’s Cac closed 1.14% higher at 4677.54, down from its peak of 4,748.
But on Wall Street, the Dow Jones Industrial Average, which jumped nearly 225 points after Wednesday’s interest rate decision, was down 153 points, or 0.86%, by lunchtime, partly due to another drop in commodity prices.
The decision to raise interest rates pushed the dollar higher against other major currencies, with the pound down nearly 1% at $1.4877, its lowest level since mid-April. Despite better than expected UK retail sales, economists believe the Bank of England is in no hurry to follow the Fed by raising interest rates in the immediate future.
The rise in the US currency helped push commodity prices lower, with Brent crude falling to $36.94, before it recovered to $37.26, down 0.35%. Investors continue to be concerned about oversupply, with the prospect of Iranian oil coming onto the market as sanctions are lifted.
Kate Spade & Co (NYSE:KATE) reported the loss of -2.65% and closed at $18.03 with the total traded volume of 3.81 million shares. Its market capitalization is $2.36 billion. The stock has a 52-week high price of $35.75 and its 52-week low was recorded at $16.76. Trader’s Choice released new research updates concerning several important developing situations including the following equities: Strategic Hotels & Resorts Inc. (BEE), Allscripts Healthcare Solutions Inc. (MDRX), Kate Spade & Co (NYSE:KATE)and Platform Specialty Products Corp. (PAH). Trader’s Choice has perfected the profitable art of picking stocks, cutting through the noise to deliver the top trade, every year. The full Research Packages are being made available to the public on a complimentary basis.
Urban Outfitters, Inc. (NASDAQ:URBN) declined -3.07% and ended at $23.03. The total traded volume was 3.80 million shares and market capitalization arrived at $2.79 billion. The stock has a 52-week high price of $47.25 and its 52-week low was recorded at $19.26, while during last trade its minimum price was $22.85 and it gained the highest price of $23.92. Urban Outfitters, Inc. (NASDAQ:URBN) a leading lifestyle specialty retail company operating under the Anthropologie, Bhldn, Free People, Terrain and Urban Outfitters brands, promulgated net income of $52 million and $152 million for the three and nine months ended October 31, 2015, respectively. Earnings per diluted share were $0.42 and $1.18 for the three and nine months ended October 31, 2015, respectively.
WisdomTree Investments, Inc. (NASDAQ:WETF) reported the decrease of -6.29% to close at $16.23 with the overall traded volume of 3.76 million shares. Its market capitalization on last close reached to $2.40 billion. The company has the total of 138.37 million outstanding shares. Its intraday-low price was $16.23 and its hit its day’s highest price at $17.57. WisdomTree Investments, Inc. (NASDAQ:WETF) an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager, promulgated the launch of the WisdomTree Global Hedged SmallCap Dividend Fund (HGSD) on the BATS Exchange. HGSD seeks to provide exposure to dividend-paying, small-capitalization companies in the U.S., developed and emerging markets while neutralizing exposure to fluctuations of foreign currency movements relative to the U.S. dollar. HGSD has an expense ratio of 0.43%.