U.S. stocks erased gains in a late-day collapse after the Federal Reserve held pat on interest rates, with mixed American growth and a sluggish global economy heightening concern the effectiveness of central-bank stimulus has reached its limits.

The S&P 500 Index fell 0.2 percent to 2,071.82 at 4 p.m. in New York, erasing a climb of 0.5 percent, and posting a fifth straight drop, the longest since February. Losses accelerated in the final half hour of trading after crude oil sold off.

"The Fed scaling back the indicated pace of rate hikes can be construed as them not seeing requisite strength -- there's a malaise that's set into the economy," said Bill Schultz, who oversees $1.2 billion as chief investment officer at McQueen, Ball & Associates Inc. in Bethlehem, Pennsylvania. "Without something to push equities higher, besides low rates, we're losing steam here. With uncertainty around the British vote later this month, the path of least resistance seems to be down at this point."

Major U.S. stock-indexes higher on Wednesday after four days of losses as lower chances of an interest rate hike whet investor appetite for risk. Fed Chair Janet Yellen had hinted at higher chances of a rate hike than the markets had priced in, but weak May jobs data and economic repercussions of a possible Brexit forced her to take a dovish stance last week.

Dow stocks mixed (14 in positive area, 16 in negative). Top looser - Intel Corporation (INTC, -1,07%). Top gainer - The Home Depot, Inc. (HD, +1,64%).

Most of S&P sectors in negative area. Top looser - Utilities (-0,7%). Top gainer - Conglomerates (+0,8%).

At the moment:

Dow 17629.00 +57.00 +0.32%

S&P 500 2072.75 +6.75 +0.33%

Nasdaq 100 4421.25 +3.25 +0.07%

Oil 48.40 -0.09 -0.19%

Gold 1287.90 -0.20 -0.02%

U.S. 10yr 1.59 -0.01

Stock closed higher ahead of the release of the Fed's interest rate decision later in the day. Analysts expect the Fed to keep its interest rate unchanged.

Market participants also eyed the economic data from the Eurozone. Eurostat released its trade data for the Eurozone on Wednesday. Eurozone's unadjusted trade surplus declined to €27.5 billion in April from €28.6 billion in March, beating expectations for a fall to €26 billion. Exports fell at an unadjusted annual rate of 1.0% in April, while imports dropped 5.0%.

The Office for National Statistics (ONS) released its labour market data on Wednesday. The U.K. unemployment rate declined to 5.0% in the February to April quarter from 5.1% in the January to March quarter. It was the lowest level since October 2005.

Analysts had expected the unemployment rate to remain unchanged.

Average weekly earnings, excluding bonuses, climbed by 2.3% in the February to April quarter, exceeding expectations for a 2.1% rise, after a 2.2% gain in the January to March quarter. The previous quarter's figure was revised up from a 2.1% rise.

Average weekly earnings, including bonuses, rose by 2.0% in the February to April quarter, exceeding expectations for a 1.7% gain, after a 2.0% increase in the January to March quarter.

The Bank of England monitors closely the wages growth it considers when to start hiking its interest rate.

Indexes on the close:

Name Price Change Change %

FTSE 100 5,966.8 +43.27 +0.73 %

DAX 9,606.71 +87.51 +0.92 %

CAC 40 4,171.58 +41.25 +1.00 %

The Hellenic Statistical Authority released its import prices data for Greece on Wednesday. Greek import prices climbed 1.3% in April, after a 1.4% rise in March.

On a yearly basis, import prices dropped 7.9% in April, after a 7.8% decline in March.

Import prices for energy plunged by 28.5% year-on-year in April, price for durable consumer goods were flat, while price for non-durable consumer goods increased by 0.1%.

Prices of capital goods rose 0.2% year-on-year in April, while intermediate goods prices decreased 2.6%.

The European Central Bank (ECB) Vice President Vitor Constancio said on Wednesday that negative deposit rates has limits, adding that the central bank should monitor "the possible occurrence of undesirable side-effects".

He also said that inflation in 2018 could be higher that estimated by the ECB.

Constancion pointed out that the central bank would continue to implement its stimulus measures.

The Polish equity market advanced on Wednesday. The market broad measure, the WIG Index, added 0.42%. Sector performance within the WIG Index was mixed. Materials (+1.33%) and food (+1.34%) stocks were the growth leaders in the WIG, while telecommunication sector names (-0.56%) were the poorest performers.

The large-cap stocks' measure, the WIG30 Index, posted a 0.56% gain. Within the index components, clothing retailer LPP (WSE: LPP) and videogame developer CD PROJEKT (WSE: CDR), generated the biggest advances, up 4.9% and 3.71% respectively. Other noticeable gainers included railway freight transport operator PKP CARGO (WSE: PKP), agricultural producer KERNEL (WSE: KER), oil refiner LOTOS (WSE: LTS) and genco ENERGA (WSE: ENG), which rebounded by 2.14%-2.82%.

The People's Bank of China (PBoC) released its new loans data on Wednesday. New loans in local currency in China were 985.5 billion yuan in May, up from April's 555.6 billion yuan.

M2 money supply jumped by 11.8% year-on-year in May.

Total social financing increased to 146.33 trillion yuan in May from 751 billion yuan in April.

The Federal Reserve released its industrial production report on Wednesday. The U.S. industrial production fell 0.4% in May, missing expectations for a 0.2% decrease, after a 0.6% rise in April. April's figure was revised down from a 0.7% increase.

The decrease was mainly driven by a drop in utilities. Mining output rose 0.2% in May, while utilities production slid 1.0%.

Manufacturing output was down 0.4% in May, after a 0.2% increase in April.

Capacity utilisation rate decreased to 74.9% in May from 75.3% in April, missing expectations for a fall to 75.2%. April's figure was revised down from 75.4%.

In the afternoon we met the next data from the US, which fit into the side of doubt about the condition of the US economy. The decline in industrial production of 0.4 percent will be important for GDP growth in the second quarter. The data are simply recession and certainly the Fed will not tighten monetary policy, not only on today's FOMC meeting, but also on the next.

Start of Wall Street on the green side helps the Warsaw market to continued today's freeze in anticipation of tomorrow morning. On the threshold of the final hour of the session the market looks exactly as it appeared after the first hour. Increase of the WIG20 is the echo of increases in other markets, although the increase in WIG20 is about half the size of the DAX growth.

U.S. stock-index futures inched higher before the outcome of the Federal Reserve's policy meeting..

Global Stocks:

Nikkei 15,919.58 +60.58 +0.38%

Hang Seng 20,467.52 +79.99 +0.39%

Shanghai Composite 2,886.92 +44.74 +1.57%

FTSE 5,978.27 +54.74 +0.92%

CAC 4,187.22 +56.89 +1.38%

DAX 9,627.87 +108.67 +1.14%

Crude $48.87 (-1.28%)

Gold $1287.00 (-0.09%)

The New York Federal Reserve released its survey on Wednesday. The NY Fed Empire State manufacturing index jumped to 6.01 in June from -9.02 in May, exceeding expectations for an increase to -4.00.

A reading above zero indicates expansion, while a reading below zero indicates contraction.

"The June 2016 Empire State Manufacturing Survey indicates that business activity expanded modestly for New York manufacturers," the New York Federal Reserve said in its report.

The new orders index increased to 10.90 in June from -5.54 in May, while the shipments index rose to 9.32 from -1.94.

The general business conditions expectations index for the next six months jumped to 34.84 in June from 28.48 in May.

The price-paid index jumped to 18.37 in June from 16.67 in May.

The index for the number of employees declined to 0.00 in June from 2.08 in May.

(company / ticker / price / change ($/%) / volume)

The U.S. Commerce Department released the producer price index figures on Wednesday. The U.S. producer price index rose 0.4% in May, exceeding expectations for a 0.3% gain, after a 0.2% increase in April.

The increase was mainly driven by a rise in services and energy prices.

Energy prices increased 2.8% in May, wholesale food prices increased 0.3%.

Services prices were up 0.2% in May, while prices for goods rose 0.7%.

On a yearly basis, the producer price index fell 0.1% in May, in line with expectations, after a flat reading in April.

The producer price index excluding food and energy increased 0.3% in April, exceeding expectations for a 0.1% rise, after a 0.1% gain in April.

On a yearly basis, the producer price index excluding food and energy climbed 1.2% in May, beating forecasts of a 1.0% gain, after a 0.9% rise in April.

Upgrades:

Downgrades:

Cisco Systems (CSCO) downgraded to Neutral from Buy at Goldman

Other:

Procter & Gamble (PG) initiated with a Buy at Jefferies; target $95

Statistics Canada released manufacturing shipments on Wednesday. Canadian manufacturing shipments climbed 1.0% in April, beating expectations for a 0.6% increase, after a 0.9% drop in March.

The increase was mainly driven by higher sales in the petroleum and coal product, transportation equipment, and primary metal industries. Transportation equipment sales rose 2.1% in April, sales of petroleum and coal products jumped 8.3%, while sales of primary metals increased 3.9%.

Inventories decreased 0.4% in April, mainly driven by a drop in transportation equipment.

Markit Economics and financial information provider Ipsos Mori released its household finance index (HFI) for the U.K. on Wednesday. The household finance index increased to 44.2 in June from 42.3 in May.

The index measuring the outlook for financial well-being over the coming twelve months remained unchanged at 49.6 in June.

The current inflation perceptions index declined to 68.0 in June from 68.1% in May.

The index measuring expected living costs over the twelve months was down to 82.4 in June from 82.7% in May.

52% of respondents expects the Bank of England's monetary policy to tighten next over next 12 months.

"UK households reported a relatively subdued financial strain in June. Thanks largely to improvements across the labour market, Markit's HFI picked up from May's 22-month low," economist at Markit, Philip Leake, said.

The first half of trading session on the Warsaw parquet was marked by low activity. The very beginning pointed out that it will be another session to wait out and so far nothing on this issue has change. A mix of low turnover and low volatility makes that wait for the Fed is combined with the suspension of the market in anticipation of the next pulse. In the result the WIG20 drifts in areas that not activate the buyers, but also slid out of the potential of market supply. If we add to this the fact that the departure from the support is cosmetic, there is really no reason to trade. In fact, the graph of the WIG20 indicates that today's growth is rather part of the consolidation over 1,750 points than a signal of market's return to increases.

At the halfway point of the session the WIG20 index was at 1,770 points (+0,45%) with the turnover of PLN 144 mln. Gains on European exchanges exceed 1%.

Stock indices traded higher ahead of the release of the Fed's interest rate decision later in the day. Analysts expect the Fed to keep its interest rate unchanged.

Market participants also eyed the economic data from the Eurozone. Eurostat released its trade data for the Eurozone on Wednesday. Eurozone's unadjusted trade surplus declined to €27.5 billion in April from €28.6 billion in March, beating expectations for a fall to €26 billion. Exports fell at an unadjusted annual rate of 1.0% in April, while imports dropped 5.0%.

The Office for National Statistics (ONS) released its labour market data on Wednesday. The U.K. unemployment rate declined to 5.0% in the February to April quarter from 5.1% in the January to March quarter. It was the lowest level since October 2005.

Analysts had expected the unemployment rate to remain unchanged.

Average weekly earnings, excluding bonuses, climbed by 2.3% in the February to April quarter, exceeding expectations for a 2.1% rise, after a 2.2% gain in the January to March quarter. The previous quarter's figure was revised up from a 2.1% rise.

Average weekly earnings, including bonuses, rose by 2.0% in the February to April quarter, exceeding expectations for a 1.7% gain, after a 2.0% increase in the January to March quarter.

The Bank of England monitors closely the wages growth it considers when to start hiking its interest rate.

Current figures:

Name Price Change Change %

FTSE 100 5,976.02 +52.49 +0.89 %

DAX 9,615.85 +96.65 +1.02 %

CAC 40 4,181.61 +51.28 +1.24 %

The French statistical office Insee released its final consumer price inflation for France on Wednesday. The French consumer price inflation rose 0.4% in May, in line with the preliminary reading, after a 0.1% increase in April.

On a yearly basis, the consumer price index were flat in May, up from the preliminary reading of -0.1%, after a 0.2% decline in April.

Fresh food prices rose 5.8% year-on-year in May, services prices climbed by 1.0%, while petroleum products prices dropped by 10.4%.

Westpac Bank released its consumer confidence index for Australia on Wednesday. The index fell 1.0% in June, after a 8.5% rise in May.

"Coming after an 8.5% surge in May, the small decline in June mostly represents a consolidation at improved levels," Westpac Senior Economist Matthew Hassan said.

"Last month's surprise rate cut from the RBA was the main catalyst behind May's rally and although confidence has slipped back a touch in June this is a fairly common pattern following an interest rate driven bounce," he added.

Statistics New Zealand released its current account data on late Tuesday evening. New Zealand's seasonally adjusted current account deficit turned into a surplus of NZ$1.31 billion in the first quarter from a deficit of NZ$2.89 billion in the fourth quarter, exceeding expectations for a NZ$1.05 billion surplus. The fourth quarter's figure was revised down from a deficit of NZ$2.61 billion.

The services surplus rose by NZ$116 million to NZ$1.1 billion in the first quarter from the previous quarter, while the goods deficit dropped by NZ$247 million to NZ$515 million.

"Generally, foreign-owned New Zealand companies earned lower profits this. This meant there was a decrease in investment income paid to foreign investors," international statistics manager Stuart Jones said.

The Office for National Statistics (ONS) released its labour market data on Wednesday. The U.K. unemployment rate declined to 5.0% in the February to April quarter from 5.1% in the January to March quarter. It was the lowest level since October 2005.

Analysts had expected the unemployment rate to remain unchanged.

The claimant count fell by 400 people in May, beating expectations for a decrease by 100, after an increase of 6,400 people in April. April's figure was revised down from a 2,400 fall.

U.K. unemployment in the February to April period was 1.67 million, down 20,000 compared with January to March.

The employment rate was 74.2% in the February to April quarter. It was the highest reading since 1971.

Average weekly earnings, excluding bonuses, climbed by 2.3% in the February to April quarter, exceeding expectations for a 2.1% rise, after a 2.2% gain in the January to March quarter. The previous quarter's figure was revised up from a 2.1% rise.

Average weekly earnings, including bonuses, rose by 2.0% in the February to April quarter, exceeding expectations for a 1.7% gain, after a 2.0% increase in the January to March quarter.

The Bank of England monitors closely the wages growth it considers when to start hiking its interest rate.

Eurostat released its trade data for the Eurozone on Wednesday. Eurozone's unadjusted trade surplus declined to €27.5 billion in April from €28.6 billion in March, beating expectations for a fall to €26 billion.

Exports fell at an unadjusted annual rate of 1.0% in April, while imports dropped 5.0%.

Britain's Chancellor George Osborne warned on Wednesday that the exit from the European Union (EU) would harm the country's economy.

"Quitting the EU would hit investment, hurt families and harm the British economy," he said.

Osborne pointed out that the government could raise taxes and cut spending in case of the exit from the EU.

U.S. index provider Morgan Stanley Capital International (MSCI) Inc. said on Tuesday that it will not add domestic Chinese stocks (Chinese A shares, which are listed in Shanghai and Shenzhen and denominated in yuan) to its key benchmark index this year.

"International institutional investors clearly indicated that they would like to see further improvements in the accessibility of the China A shares market before its inclusion in the MSCI Emerging Markets Index," MSCI managing director and global head of research, Remy Briand, said in a statement.

"In keeping with its standard practice, MSCI will monitor the implementation of the recently announced policy changes and will seek feedback from market participants," he added.

WIG20 index opened at 1766.96 points (+0.25%)*

WIG 44874.83 0.33%

WIG30 1972.39 0.45%

mWIG40 3425.75 -0.26%

*/ - change to previous close

Better than expected end of the session on Wall Street and a weakening of the yen merged with the expected increases on European markets and the stronger zloty. As a result, the WIG20 index started the day with rise. The increase shows the ideal defense of 1,750 points area. Most important, however, that the graph is moving away 1,750 points and minimizes the risk of a decline at an important level, which would be an invitation to test the January hole.

Looking from a distance on the topic of Brexit and its impact on markets, we should wait to 23.06 . None of the larger players will not be in hurry, which may mean reduced turnover. In turn, each new survey can be clearly reflected in the illiquid market.

Tuesday was the fifth consecutive day of growing risk aversion and a flight of capital to safe havens. Uncertainty among investors is increasing with the approach of the expected decision of central banks (the Fed on Wednesday, on Thursday the Bank of Japan) and the outcome of the referendum on June 23 (Brexit). The result of this uncertainty was further declines in the vast majority of stock markets, the strengthening of currencies such as the dollar, yen and franc, as well as further declines in yields of belonging to the safest bonds.

Tuesday's session on Wall Street ended in a series of successive declines in the major indexes. The broad S&P500 loss was less than 0.2 percent. Current quotations of the contract for the S&P 500 is slightly positive which should give pros opening of European markets. However it is difficult to count on the fireworks when the variables that caused recent declines remain in force.

In case of the WIG20, the most important will be the condition of the zloty, which strength or weakness have this year crucial impact for sentiment towards blue chips. With the strengthening of the zloty - difficult before the release of the FOMC statement - activity on the demand side will be easier.

If today and tomorrow any new information will not appear, the balance of power seems relatively clear. The chart of the WIG20 shows two options for the index:

1. The decrease under the area of support in the region of 1,750 points will open the way to a meeting with the January lows set in the vicinity of 1,650 points.

2. Defense of 1,750 points directs attention to the June highs in the region of 1,850 points and may trigger speculation about the formation of a double bottom, when the potential for growth can be estimated at more than 100 points.

European stocks booked a fifth consecutive decline on Tuesday as heightened "Brexit" worries unsettled equity investors.

Polls: European stocks hit intraday lows Tuesday afternoon and losses sharpened into the close of trading as Reuters reported that the European Central Bank is preparing to publicly say it will support the financial markets, along with the Bank of England, if the U.K. votes in favor of leaving the EU. A referendum on the issue is slated for June 23, with the risk of an U.K.-EU breakup known as Brexit.

Investors have been seeking shelter in the bond market ahead of the referendum. Polls released Tuesday and Monday suggested that voters were in favor of leaving the EU. Among the surveys, market research firm TNS said 47% of likely voters back a Brexit, compared with 40% who are opposed.

A Sunday Times/YouGov poll showed 46% of Britons support leaving the EU, while 39% wish to remain.

U.S. stocks fell for a fourth straight session on Tuesday as the Federal Reserve kicked off its two-day policy meeting and fears over the U.K. voting to leave the European Union amped up. The Dow Jones Industrial Average DJIA, -0.33% fell 57.66 points, or 0.3%, to close at 17,674.82, as shares of American Express Co. AXP, -4.08% dropped more than 4%. The S&P 500 Index SPX, -0.18% declined 3.74 points, or 0.2%, to finish at 2,075.32, weighed down by the financials and materials sectors. The Nasdaq Composite Index COMP, -0.10% slipped 4.89 points, or 0.1%, to close at 4,843.55. Meanwhile, the CBOE Volatility Index VIX, -2.24% or so-called fear index, remained above 20.

Asian shares were slightly weaker but recovered from near three-week lows on Wednesday as markets digested U.S. index provider MSCI's decision not to include domestic Chinese equities in its indexes and Brexit fears drove investors to assets such as U.S. bonds and the yen.

Mainland Chinese shares, among Asia's worst performers this year, were mixed while Hong Kong slid, as markets, which had expected Chinese A-shares to be included in the emerging market index, considered the announcement.

MSCI's broadest index of Asia-Pacific shares outside Japan were down 0.1 percent. Japan's Nikkei reversed earlier losses to rise 0.7 percent.

MSCI in its decision said Beijing had more work to do in liberalising capital markets, and said it wanted more time to assess the effectiveness of the Qualified Foreign Institutional Investor (QFII) quota allocation scheme and capital mobility policy changes.

MSCI said it would consider China A shares' inclusion as part of its 2017 review and didn't rule out a potential off-cycle announcement should further positive developments occur ahead of June 2017.

(index / closing price / change items /% change)

Nikkei 225 15,859 -160.18 -1.00 %

Hang Seng 20,387.53 -125.46 -0.61 %

S&P/ASX 200 5,203.26 -109.33 -2.06 %

Shanghai Composite 2,842.92 +9.85 +0.35 %

FTSE 100 5,923.53 -121.44 -2.01 %

CAC 40 4,130.33 -96.69 -2.29 %

Xetra DAX 9,519.2 -138.24 -1.43 %

S&P 500 2,075.32 -3.74 -0.18 %

NASDAQ Composite 4,843.55 -4.89 -0.10 %

Dow Jones 17,674.82 -57.66 -0.33 %