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Wall Street continues to bounce: good results and the Fed counter coronavirus

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Wall Street still bouncing driven by the climbs of Manzana, which last night posted earnings above expectations thanks to the higher revenue in its history. For now, business optimism wins the ground coronavirus Chinese, as happened on Tuesday, when New York indices rose 1% (Monday fell more than 1.5%). So far, the virus has caused the death of 132 people in China and has infected more than 6,000.

In the results chapter, General Electric It advances strongly after publishing its figures. In the Dow Jones, McDonald's He has won more than expected from the consensus of analysts, but his shares are flat.

For its part, Boeing 2% rebounds despite recognizing costs of almost 19,000 million dollars for the forced landing of 737 Max and announcing its first annual loss since 1997.

For now, the numbers invite optimism. 25% of S&P 500 companies have already paid accounts to the market and 72% have exceeded expectations, according to FactSet. Tonight, they will present Tesla, Facebook, and Microsoft.

FEDERAL RESERVE MEETING

The US Federal Reserve has kept interest at 1.5% -1.75% and rated current interest rates as "appropriate" in line with forecasts.

"The Committee judges that The current monetary policy stance is appropriate to support the sustained expansion of economic activity, the strong conditions of the labor market and the inflation that returns to the symmetric objective of 2%, "explained the central bank.

Further, the Fed has raised the IOER to 1.6% from 1.55%, in line with the forecasts. Experts had already anticipated this increase in the interest rate of excess reserves to adjust it to the effective interest rate of federal funds.

Finally, the organism "will continue to purchase treasury bills at least until the second quarter of 2020 to maintain ample balance of reserves in its balance sheet at the level that prevailed at the beginning of September, "when tensions occurred in the US money market. This movement also It is in line with the planned, although many analysts consider these 'technical' purchases as a covert QE that is driving Wall Street.

In other markets, oil West texas up 0.8%, to 53.51 dollars, after the falls of the last days by the forecast of a lower demand from China, the largest importer of oil in the world. And the ounce of gold falls 0.5%, to 1,568 dollars. In addition, the profitability of 10-year American bond goes up to 1.62% and the 2-year bond goes down to 1.43%. Finally, the euro 0.1% is depreciated and changed to $ 1.1010.

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