U.S. stocks open higher as Fed news supports; Dow Jones up 0.09%

U.S. stocks opened higher on Thursday, after the release of better-than-expected U.S. jobless data and as the Federal Reserve's decision to hold its stimulus program boosted market sentiment. 

During early U.S. trade, the Dow Jones Industrial Average edged up 0.09%, the S&P 500 index added 0.27%, while the Nasdaq Composite index gained 0.34%. 

The Department of Labor said the number of people who filed for unemployment assistance in the U.S. in the week ending September 13 rose by 15,000 to a seasonally adjusted 309,000 from an upwardly revised 294,000 the previous week. 

Analysts had expected the number of people who filed for unemployment assistance to rise by 36,000 to 330,000 last week. 

A separate report showed that the U.S. current account deficit narrowed to USD98.9 billion in the second quarter, from an downwardly revised deficit of USD104.9 billion in the three months to March. Analysts had expected the current account deficit to improve to a USD97 billion. 

The data came a day after the Fed held back from reducing the USD85 billion pace of its monthly asset purchases. 

Bernanke refused to commit to reducing bond purchases this year, saying the stimulus program was "not on a preset course." 

Commodity-linked stocks were active, as the Fed's policy statement sent commodity prices broadly higher. Shares in Royal Gold jumped 1.09% at the open of the U.S. trading session, while Freeport-McMoRan copper and gold mining company rallied 1.13%. 

In the financial sector, Wells Fargo climbed 0.58% after saying it is eliminating about 1,800 more jobs in its home-loan production business seeing as rising mortgage rates are weighing on borrowers’ demand for refinancing. 

Separately, JPMorgan Chase shares were up 0.17%, amid reports the U.S. lender is expected to pay about USD900 million to settle U.S. and U.K. claims that lax internal controls led the bank to provide inaccurate information about last year’s record trading loss to the board. 

Elsewhere, Apple shares surged 1.45% after first reviews of the new iPhones released on Wednesday showed mostly positive reactions for the 5C and 5S. 

Blackberry shares trended lower however, slipping 0.18%, after the Wall Street Journal reported that the smartphone maker is preparing to lay off up to 40% of its staff by the end of the year. 

Other stocks likely to remain in focus included ConAgra and Rite Aid, scheduled to report quarterly earnings later in the day. 

Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 rallied 1.21%, France’s CAC 40 jumped 0.94%, Germany's DAX gained 0.92%, while Britain's FTSE 100 surged 1.45%. 

During the Asian trading session, Hong Kong's Hang Seng Index jumped 1.67%, while Japan’s Nikkei 225 Index rallied 1.80%. 

Later in the day, the U.S. was to release the Philly Fed manufacturing index as well as data on existing home sales.

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Dollar mixed vs. rivals after U.S. data, Philly Fed ahead

The U.S. dollar was mixed against the other major currencies on Thursday, after data showed that U.S. jobless claims rose less than expected last week, while news that the Federal Reserve left its stimulus program unchanged continued to weigh on the greenback. 

During late European afternoon trade, the dollar was lower against the euro, with EUR/USD adding 0.17% to 1.3544. 

The Department of Labor said the number of people who filed for unemployment assistance in the U.S. in the week ending September 13 rose by 15,000 to a seasonally adjusted 309,000 from an upwardly revised 294,000 the previous week. 

Analysts had expected the number of people who filed for unemployment assistance to rise by 36,000 to 330,000 last week. 

A separate report showed that the U.S. current account deficit narrowed to USD98.9 billion in the second quarter, from an downwardly revised deficit of USD104.9 billion in the three months to March. Analysts had expected the current account deficit to improve to a USD97 billion. 

The data came a day after the Fed held back from reducing the USD85 billion pace of its monthly asset purchases. 

Bernanke refused to commit to reducing bond purchases this year, saying the stimulus program was "not on a preset course." 

The greenback was higher against the pound, with GBP/USD retreating 0.42% to 1.6076. 

Earlier Thursday, official data showed that U.K. retail sales fell 0.9% in August, confounding expectations for a 0.4% rise, after a 1.1% increase the previous month. 

In addition, the Confederation of British Industry said its index of industrial order expectations rose to 9 in September, from a reading of zero in August, beating expectations for an increase to 2. 

Elsewhere, the greenback jumped higher against the yen, with USD/JPYrallying 1.34% to trade at 99.24, but edged lower against the Swiss franc, with USD/CHF easing 0.08% to 0.9112. 

The Swiss National Bank on Thursday re-affirmed its cap on the franc and vowed to defend it with unlimited currency interventions to protect the economy. 

The comments came after the SNB held its benchmark interest rate near zero, in a widely expected move. 

The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD dipping 0.06% to 1.0214,AUD/USD sliding 0.31% to 0.9490 and NZD/USD rising 0.19% to 0.8386. 

Official data earlier showed that New Zealand's gross domestic product expanded by 0.2% in the second quarter, in line with expectations, after an upwardly revised 0.4% expansion in the three months to March. 

In Canada, official data showed that wholesale sales rose 1.5% in July, more than the expected 1% increase, after a downwardly revised 3.1% decline the previous month. 

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.16% to 80.35. 

Later in the day, the U.S. was to release the Philly Fed manufacturing index as well as data on existing home sales.

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Forex - EUR/USD hits fresh 7-month highs after U.S. jobless data

The euro rose to fresh seven-month highs against the U.S. dollar on Thursday, after data showed that U.S. jobless claims rose less than expected last week, while the Federal Reserve's decision to leave its stimulus program unchanged continued to weigh on the greenback. 

EUR/USD hit 1.3568 during European afternoon trade, the pair's highest since February 7; the pair subsequently consolidated at 1.3543, adding 0.16%. 

The pair was likely to find support at 1.3338, Wednesday's low and resistance at 1.3596, the high of February 6. 

The Department of Labor said the number of people who filed for unemployment assistance in the U.S. in the week ending September 13 rose by 15,000 to a seasonally adjusted 309,000 from an upwardly revised 294,000 the previous week. 

Analysts had expected the number of people who filed for unemployment assistance to rise by 36,000 to 330,000 last week. 

A separate report showed that the U.S. current account deficit narrowed to USD98.9 billion in the second quarter, from an downwardly revised deficit of USD104.9 billion in the three months to March. Analysts had expected the current account deficit to improve to a USD97 billion. 

The data came a day after the Fed held back from reducing the USD85 billion pace of its monthly asset purchases. 

Speaking after the conclusion of the Fed's two-day policy-setting meeting, Fed Chairman Ben Bernanke Bernanke said he wanted to "wait a bit longer and to try to get confirming evidence" that the economy is showing signs of lasting improvement. 

Bernanke refused to commit to reducing bond purchases this year, saying the stimulus program was "not on a preset course." 

Separately, the Fed cut its projection for 2013 economic growth to a 2.0% to 2.3% range from a June estimate of 2.3% to 2.6%. 

The euro was also higher against the pound with EUR/GBP climbing 0.57%, to hit 0.8424. 

Later in the day, the U.S. was to release the Philly Fed manufacturing index as well as data on existing home sales.

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U.S. futures rise on Fed statement, miners lead; Dow Jones up 0.35%

U.S. stock futures pointed to a higher open on Thursday, led by sharp gains in mining stocks as the Federal Reserve's decision to maintain its stimulus program on Wednesday boosted market sentiment. 

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.35% rise, S&P 500 futures signaled a 0.46% increase, while the Nasdaq 100 futures indicated a 0.42% climb. 

The Fed refrained from reducing the USD85 billion pace of its monthly asset purchases and said the central bank must determine its policies based on "what’s needed for the economy," even if it surprises markets. 

Speaking after the conclusion of the Fed's two-day policy-setting meeting, Fed Chairman Ben Bernanke Bernanke said he wanted to "wait a bit longer and to try to get confirming evidence" that the economy is showing signs of lasting improvement. 

Bernanke refused to commit to reducing bond purchases this year, saying the stimulus program was "not on a preset course." 

Separately, the Fed cut its projection for 2013 economic growth to a 2.0% to 2.3% range from a June estimate of 2.3% to 2.6%. 

Commodity-linked stocks were expected to be active, as the Fed's policy statement sent commodity prices broadly higher. Shares in Royal Gold were up 0.04% in extended trading, after soaring over 8% on Wednesday, while Freeport-McMoRan copper and gold mining company rose 0.23% pre-market. 

The financial sector was also likely to be in focus, as Wells Fargo said it is eliminating about 1,800 more jobs in its home-loan production business seeing as rising mortgage rates are weighing on borrowers’ demand for refinancing. 

Separately, JPMorgan Chase, up 0.26% after hours, was reportedly expected to pay about USD900 million to settle U.S. and U.K. claims that lax internal controls led the U.S. lender to provide inaccurate information about last year’s record trading loss to the board. 

Also in company news, the Wall Street Journal reported that Blackberry is preparing to lay off up to 40% of its staff by the end of the year. 

In the same sector, Apple shares climbed 0.80% in early trading after first reviews of the new iPhones released on Wednesday showed mostly positive reactions for the 5C and 5S. 

Other stocks likely to remain in focus included ConAgra and Rite Aid, scheduled to report quarterly earnings later in the day. 

Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 rallied 1.32%, France’s CAC 40 jumped 1.09%, Germany's DAX gained 1.13%, while Britain's FTSE 100 surged 1.43%.

During the Asian trading session, Hong Kong's Hang Seng Index jumped 1.67%, while Japan’s Nikkei 225 Index rallied 1.80%. 

Later in the day, the U.S. was to release the weekly report on initial jobless claims, as well as the Philly Fed manufacturing index and data on existing home sales.

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