US stocks ended mixed this morning as it digested minutes of the Federal Reserve’s last policy meeting.
The Dow Jones Industrial Average edged down 8.68 (0.06 per cent) to 15,291.66.
The broad-based S&P 500 was also little-changed, rising 0.30 (0.02 per cent) to 1,652.62. Meanwhile the tech-rich Nasdaq Composite Index climbed 16.50 (0.47 per cent) to 3,520.76.
Australian stocks edged higher in early trade this morning.
Resources stocks were the strongest performers, with BHP Billiton up 68 cents, or 2.14 per cent, to $32.51 and Rio Tinto lifting 85 cents to $53.24.
Fortescue shares were up nine cents to $3.45, while gold miner Newcrest had gained 54 cents, or 5.43 per cent, to $10.49
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The big four banks were also performing well. Westpac shares had lifted 28 cents to $29.32, NAB had gained 30 cents to $29.75, ANZ was 23 cents higher at $28.87 and the Commonwealth had risen 43 cents to $70.78.
The Federal Reserve’s minutes were consistent with the Fed’s stance on tapering, said Alan Skrainka, chief investment officer of Cornerstone Wealth Management.
“No big surprises here at all,” Skrainka said in New York.
“It just reinforced the view that quantitative easing will be tapered soon, but the exact pacing and timing will depend on economic data.”
Apple shares dropped 0.4 per cent after a federal judge ruled the company violated antitrust laws in conspiring with publishers to raise e-book prices. The judge ordered a new hearing to assess damages to be paid.
Tribune Company gained 3.2 per cent after announcing plans to spin off its struggling newspaper division from its growing television station holdings.
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Smart-phone manufacturer BlackBerry fell 3.7 per cent following a report that the company planned more layoffs amid disappointing sales of its most recent devices.
Bond prices fell. The yield on the 10-year Treasury rose to 2.68 per cent from 2.63 per cent late Tuesday, while the 30-year pushed to 3.69 per cent from 3.65 per cent. Bond prices and yields move inversely.
Australian bond futures contract prices firmed.
After a volatile offshore session, 10-year Australian bond futures contract prices opened firmer as dealers reacted to Dr Bernanke’s suggestion that stimulus measures would continue.
Commonwealth Bank interest rate strategist Alex Stanley said that after a session of conflicting messages on the US economy, the market reacted to Dr Bernanke’s words.
“Ben Bernanke’s comments in the Q and A session after he finished his speech gave the market a little bit more of a dovish tone than they got from the minutes,” he said.
“The most recent message came later in the US session, only about two hours ago as we speak, from Ben Bernanke which was that accommodation is going to need to be here for some time.”
