US stocks, bonds jump on go-slow fed; oil climbs - Standard

US stocks, bonds jump on go-slow fed; oil climbs - Standard

US stocks, bonds jump on go-slow fed; oil climbs - Standard

This is probably precisely what Janet Yellen wants, as she looks to drive inflation back towards the 2% target.

Federal Reserve Chair Janet Yellen was slated to testify before the U.S. House of Representatives Committee on Financial Services on Wednesday. The Shanghai Composite index climbed 0.6 percent at 3,218.16 and the S&P ASX 200 advanced 1.1 percent to 5,736.80.

"Yellen gave some hope to the dollar bulls with her acknowledgement of the improvements in the economy, but at the end of the day investors are still skeptical of what data is going to be like", said Kathy Lien, managing director at BK Asset Management in NY.

USA stocks were slightly higher in early trading on Thursday, ahead of Federal Reserve Chair Janet Yellen's second day of testimony and a day after she signaled a dovish stance on interest rates.

In her testimony, Yellen expected the US economy will continue to expand at a moderate pace over the next couple of years, as the steady job gains would support income growth and then consumer spending. It rose 45 cents, or 1 percent, to settle at $45.49 per barrel on Wednesday.

The euro weakened against the dollar linked to the fall in Germany's 10-year bund yield during the day.

ANALYST TAKE: "The question now is whether Yellen reiterates the point in today's testimony, adds further color to it or possibly backtracks on it", said Craig Erlam, senior market analyst at OANDA.

The yen weakened 0.1 per cent to 113.43 per USA dollar as of 9:20am in Tokyo.

In the currency market, the Australian dollar reached a four-month high against the US dollar on Friday. The greenback fetched as little as 1.2740 Canadian dollars overnight compared to the 1.2920 Canadian dollars seen in the prior session. Dollar/loonie fell to 1.2788 following the release of the decision from 1.2905 before, for a daily loss of 0.94%.

The Australian dollar stood at $0.7685, not far from a June 30 high of $0.7712.

"If U.S. prices continue to decline, it'll be hard for the markets to sustain the current mood toward monetary tightening, and some markets are already starting to feel that now", said Daisuke Karakama, chief market economist at Mizuho Bank Ltd.in Tokyo. In the three months to May, average weekly earnings, excluding bonuses, rose by 2.0% year-on-year, above consensus estimates of 1.9% and above the 1.7% recorded in August.

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