Market Report 15.09: The focus is in the Central Banks.
All the markets still trading with a lot of volatility, and a lot of doubts are in the head of the investors, the upcoming monetary policy meeting from the U.S. Federal Reserve is on focus for market watchers, the meeting is in the next week and we will see effects in all the assets are around the world.
On Wednesday the U.S markets closed mixed, with the Dow Jones industrial average closing down 31.98 points, at 18,034.77. The S&P 500 index slipped 1.25 points, to end at 2,125.77, while the Nasdaq gained 18.52 points, to 5,173.77. And today, the session in Asia followed a mixed finish in the U.S. and amid lingering uncertainty over key central bank policy meetings next week. Japan’s Nikkei 225 slipped 209.23 points while the Topix index fell 13.63 points as stocks came under pressure from a relatively stronger yen and growing uncertainty over the Bank of Japan’s (BOJ) monetary policy meeting due next week.
The focus in almost all the markets on the world is in each Central Banks, In a few hours The Bank of England is meeting but no interest rate changes are expected from the bank. The decision will be announced at 12:00 noon London time and the expectation is very high. The market is waiting for a new monetary stimulus, after the important steps taken at the meeting on August 4. In addition, the expansionary monetary policy could be complemented by fiscal stimulus in November.
Another big influence in the majority of the indices is the changers of the oil prices, on Wednesday dropped following mixed U.S. inventory data. Data from the Energy Information Administration showed that stateside inventories of distillates, which include diesel and heating oil, rose by 4.6 million barrels in the week to September 9. According to Reuters, this was higher than analysts’ expectations for a 1.5 million barrel increase. In contrast, crude inventories fell by 559,000 barrels despite market expectations for a 3.8 million barrel build up.
In the currency market, the dollar advanced against a basket of currencies, with the dollar index at 95.499, up from levels under 95 last week.
Waiting for the announcements of the BOE at 12 of London, the buyers shows a lot of interest in the level of the minimums of this month (support point: 0.8480). In the hours of the meeting we will see a lot of volatility in the GBP with the effects in the rest of the currencies.
Graphics by: www.etoro.com
Apple’s iPhone 7 goes on general sale on Friday and the company reported initial quantities of its larger-screen iPhone 7 Plus have sold out. The regular iPhone 7 has sold out in the “jet black” color. The strong demand reported by Apple helped its shares rise on Wednesday, and the price reach the high time level. Today is possible that the positive trend still on.
Graphics by: www.etoro.com
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