Stocks, Oil Advance as Dollar Weakens Before Fed Sets Policy

On December 16th, US and European stocks rose on speculation that the Federal Reserve will announce its plans to sustain a record low interest rates for an extended period. The S&P 500 index went up by 0.6 percent, the European Dow Jones Stoxx 600 index gained for a fifth straight day, Russia’s Micex index jumped 4.2 percent, oil surged above $73 in New York, and copper and gold rose as well. It is very likely that the Fed will keep interest rates low for the next few quarters. It will be known soon whether this will be the Fed’s strategy or not.