Asian markets closed mostly higher. The Kospi advanced .9% to 1854, the Nikkei rose .2%, and the ASX 200 climbed .8%. China’s Shanghai Composite jumped 2.7% to 2513, while Hong Kong’s Hang Seng trailed the region, shedding 1%.
The bullish fever failed to reach Europe, where the major markets fell. The DAX sank 2.5%, the FTSE fell 1.7%, and the CAC40 declined 1.5%. The ECB relaxed the rules for what instruments it will accept as collateral, in an attempt to increase liquidity for cash strapped banks.
US markets tumbled following the Fed’s FOMC statement. The Fed announced a 3rd round of bond buying focused on longer term debt, due to “significant downside risks to the economic outlook”. The Dow plunged 284 points to 11125, the Nasdaq fell 2%, and the S&P 500 dropped 2.9%.
Leading US banks sank after being downgraded by Moody’s. Citigroup fell 5.2%, Bank of America lost 7.5% and Wells Fargo shed 3.9%.
Oracle shares rose 4.2% after beating earnings forecasts, and General Mills gained 2.5% on a solid earnings report.
Currencies
The Dollar soared against global currencies, climbing 1.4% against the Pound, Canadian Dollar and Swiss Franc. The Euro slumped .9% to 1.3577, and the Australian Dollar closed down 1.1% at 1.0142.
Economic Outlook
Home sales jumped by 7.7% to 5.03 million, far above estimates.
Thursday’s reports will include the FHFA home price index, leading indicators and weekly jobless claims.