GLOBAL MARKETS-Stocks rise on Fed; report of Chinese stimulus
REUTERS 10:47 AM ET 09/17/14
* Shares rise, Fed not seen adjusting rate hike guidance
* Uncertainty persists over Scotland referendum
* Report on Chinese stimulus lifts copper prices (Updates with open of U.S. trading, changes dateline; previous LONDON)
By Ryan Vlastelica
NEW YORK, Sept 17 (Reuters) - Stock markets around the world rose on Wednesday, boosted by speculation that the U.S. Federal Reserve would maintain a pledge to keep rates low for a "considerable time."
A report that China's central bank would provide the country's big lenders with fresh funds also contributed to the bullish tone, overshadowing the uncertainty surrounding Thursday's Scottish independence referendum, which most polls suggest is too close to predict.
Markets rallied on Tuesday as investors bet that the Fed would keep the "considerable time" language in its statement, which will be released in the afternoon. While the phrase may be qualified, dropping it entirely may be taken as a hawkish step that could pressure equities and strengthen the dollar further.
"There is no overwhelming need to come across all hawkish yet and, a return to some kind of normality is expected at some stage, the Fed is unlikely to take any chances which could negatively impact economic growth in the short term," said Gary Jenkins, chief credit strategist at LNG Capital.
"For this particular recovery, I think that the Fed would rather act a little bit too late than a little bit too early."
The Dow Jones industrial average was up 22.19 points, or 0.13 percent, at 17,154.16. The Standard & Poor's 500 Index was up 2.48 points, or 0.12 percent, at 2,001.46. The Nasdaq Composite Index was up 4.16 points, or 0.09 percent, at 4,556.92.
The MSCI International ACWI Price Index rose 0.3 percent while an index of top European shares rose 0.5 percent.
Shares in Shanghai rose 0.5 percent while Hong Kong's Hang Seng Index was up 1 percent, boosted by reports that the People's Bank of China would provide $81.5 billion in short-term funding to the country's top five banks.
The dollar index and the euro were unchanged on the day at 84.037 and $1.2964, respectively.
The benchmark 10-year U.S. Treasury note was up 3/32, the yield at 2.5779 percent.
In commodities trading, copper futures rose 0.2 percent, aided by the Chinese report. Gold rose 0.1 percent in its third straight daily advance while silver was down 0.4 percent.
Brent crude futures slipped 0.2 percent to $98.85 per barrel while U.S. crude futures lost 0.8 percent to $94.06 a barrel. (Reporting by Rayan Vlastelica; Editing by Dan Grebler)
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