| The dollar hit a five-month low against the euro | | | | some earlier losses, while firmer Asian and other |
| and a three-week rally in global shares slowed | | | | emerging market shares boosted the MSCI world |
| after the Federal Reserve opened the door to | | | | equity index 0.7 %. Emerging market stocks rose |
| more monetary easing, signaling the depth of its | | | | 0.6 %. |
| concern over weak growth. | | | | The Thomson Reuters global stock index gained |
| Gold hit record highs on the prospect of more U.S. | | | | 0.4 %. |
| stimulus and a weaker dollar, while prospects of | | | | Investors' major concern in Europe remains the |
| more cash flowing through the system boosted | | | | level of government debt and persistent worries |
| shares and currencies in developing economies | | | | about Ireland's fiscal deficit pushed the spread of |
| that are outperforming Europe and the United | | | | its 10-year bond yield over German Bunds to euro |
| States. | | | | lifetime highs of 425 basis points. |
| Dollar tumbles, global shares mixed as Fed easing | | | | The Portuguese spread also hit a euro lifetime |
| eyed. | | | | high of 406 bps, before dropping back to 391 bps |
| The Fed on Tuesday said it stood ready to pump | | | | after a successful bond auction. |
| new dollars into the economy -- a second round | | | | The dollar fell 1 % against a basket of major |
| of so-called quantitative easing. It made no policy | | | | currencies. The euro rose as high as $1.3440, its |
| shift but the statement was more explicit than | | | | strongest since April. At mid-morning in New York, |
| those from previous meetings, analysts said. | | | | the euro had gained 1.24 % to $1.3415. Against |
| European stocks fell and Wall Street shares stood | | | | the Japanese yen, the dollar fell 0.71 % to 84.49 |
| little changed as investors were torn between | | | | yen. |
| expectations for Fed help and the message of a | | | | The sliding dollar helped gold, which rose to a |
| faltering economic recovery. They were also | | | | record high above $1,296 an ounce. U.S. crude oil |
| uncertain if moves by the Fed would be enough | | | | rose 0.75 % to $75.53 a barrel. |
| to ward off recession. | | | | "It looks like the hurdle for (quantitative easing) |
| "The Fed's policy statement was the strongest | | | | has been lowered and the Fed is more concerned |
| hint yet that increased policy easing ... will be | | | | about the inflation picture," said Nick Stamenkovic, |
| implemented if upcoming economic indicators | | | | rate strategist at RIA Capital, who added that the |
| continue to point to a recovery that is losing | | | | Fed may act as early as November. |
| momentum," said Omer Esiner, chief market | | | | Yields on benchmark U.S. Treasuries fell to their |
| analyst at Commonwealth Foreign Exchange Inc in | | | | lowest levels in three weeks as prices extended a |
| Washington. | | | | rally from Tuesday when the Fed raised |
| The Dow Jones industrial average was down 7.03 | | | | prospects of more quantitative easing. This easing |
| points, or 0.07 %, at 10,754.00. The Standard | | | | could be in the form of Treasury bond purchases, |
| & Poor's 500 Index fell 2.76 points, or 0.24 | | | | some economists said. |
| %, at 1,137.02. The Nasdaq Composite Index was | | | | The yield on the benchmark 10-year Treasury |
| off 13.11 points, or 0.56 %, at 2,336.24. | | | | note declined 0.04 %age point to 2.54 %. |
| The FTSEurofirst 300 index fell 0.3 %, recovering | | | | |