US equity markets climbed to their best levels in nearly two months as the Federal Reserve left interest rates unchanged as expected but dropped its longstanding reference to “further gradual” rate hikes. - Dow surged +435-points or +1.77% to reclaim the 25,000 mark for the first time in over a month. The broader S&P500 +1.55%, NASDAQ +2.20%, with Apple Inc climbing +6.79% after posting their December quarter earnings after the close of the previous trading session. The Federal Reserve left benchmark overnight lending rates unchanged between a range of 2.25% and 2.5% as expected, after lifting rates four times in 2018. The central bank emphasised that it will be “patient as it determines what future adjustments to the target range for the federal-funds rate may be appropriate to support these outcomes.” The central bank also said it would adjust the rate of its balance-sheet runoff, and may even consider ending it. Elsewhere, US-China trade talks resumed Wednesday (30 January) as federal prosecutors accused Huawei of violating US sanctions on Iran and of intellectual property theft which had obviously angered the Chinese government. Huawei has denied the allegations.
