In the wait and the see mode.
Good Morning traders,
We already start a very important week; all the investors will be focus in the FED and the possibility to change the interest rate or not. Is ahead the speech on Friday by Federal Reserve chair Janet Yellen at Jackson Hole that can give clues about the timing of a U.S interest rate hike.
Several Fed officials have commented on the timing of a rate hike, while Fed Vice-Chairman Stanley Fischer said on Sunday that the U.S. central bank was close to hitting its targets for full employment and 2 percent inflation. Still, analysts don’t expect an interest rate hike next month, they think that maybe there will be more chances in the meeting of December. This upcoming Friday is sure to keep the market wide awake.
In wait and see mode The S&P 500 ended last week almost unchanged, and yesterday the U.S. equities were mixed at the close, as gains in the Healthcare, Utilities and Financials sectors propelled shares higher while losses in the Oil & Gas, Technology and Consumer Goods sectors led shares lower.
At the close in NYSE, the Dow Jones Industrial Average declined 0.12%, while the S&P 500 index lost 0.06%, and the NASDAQ Composite index gained 0.12%. The growing chances of a rate hike in the U.S. are not the finish end for the latest stock market rally, but the stocks can take a break, see the situation, and maybe still going up more.
Until now, slow trading and low volumes haven’t engendered a negative tone on the market, though a sluggish trading pattern with few shares changing hands is likely to continue into this week, and could turn the tide, creating some negativity in the market. The bulls indeed have a clear advantage over the bears, price movement showing few fault-lines, but now, more than ever, it’s critical to have your finger on the pulse of the market and be ever-alert.
Markets are also hoping that an informal meeting of OPEC members on the sidelines of an energy conference in Algeria next month could see production freezes or cuts. But the fall in oil prices suggest optimism around such an action has faded. And the effect of the FX markets are also important for the oil, because a stronger dollar weakens demand for oil, and the dollar index was up 0.2% as U.S. rate hike talk was refueled by hawkish comments by Federal Reserve vice chair Stanley Fischer. So the U.S. crude was down $1.24, or 2.52%, at $47.87 yesterday.
The euro edged up 0.1 percent to 1.1332, stepping off an overnight low of $1.1271. The dollar rose after the nation’s central bank chief said he did not see the need for a rapid succession of interest rate cuts. But now is the time to take a little correction in the usd, from a technical viewpoint we can see a stronger resistance in 1.1354, and the support point is in 1.1330.
Graphics by: www.etoro.com
After the stock raise 12% in consequents of excellent earnings results, the taking profit is coming, and yesterday closed in -1.25%. For today if the share break the minimums yesterday price (94.7), probably we can see another day to take profit.
Graphics by: www.etoro.com
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