by JustForex
At yesterday’s press conference, Jerome Powell said that the Fed would wait for strong labor market numbers in the coming months before cutting the QE program. Currently, the Fed is not cutting QE. The interest rate remains unchanged. Also, the Fed chair said that the inflation rate could be higher and steady, but it would return to the 2% target in the following year. The situation in the financial markets will remain the same at least until the end of August. Subsequently, the dollar index decreased by 0.19% to a two-week low.
The US stock market finished the day without a single dynamic. The Dow Jones index decreased by 0.36%, the Nasdaq index increased by 0.70%, and the S&P 500 index remained at the same level. Boeing shares were the growth leaders among the Dow Jones index components, adding 4.16% by the end of the day. The company reported its first quarterly profit in almost two years (the previous 6 quarters were unprofitable). This proves the growth of orders for commercial planes, which is a sign of recovery of air transportation after the pandemic. At the same time, the orders of Boeing 737 MAX also increased in recent months, after the regulators gave permission to liner flights, as Boeing made fixes to the flight control system that caused crashes in 2018 and 2019.
European stock indexes closed in the green zone yesterday. Airbus says that it plans to produce a new cargo plane based on its A350 passenger jet version. Also, the world’s largest commercial airliner maker sharply raised its delivery and profit forecasts for the next year, which means orders grow. Starting next week, England is opening its borders to vaccinated tourists from the EU and US without quarantine, which is a long-awaited stimulus for travel companies and airlines.
Germany will report on the inflation rate and the status of the labor market today.
US crude oil inventories declined again last week, pushing WTI crude prices slightly higher. The Delta strain is still putting pressure on the oil market, but analysts believe the pressure will ease significantly in a few weeks. However, oil demand in the US and Europe is starting to fall.
Free Reports:
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Gold prices increased yesterday as the Fed’s soft monetary policy remains unchanged. As long as the Fed doesn’t start reducing asset purchases, gold and silver prices will grow.
China’s securities regulator held a meeting with executives from the world’s top investment banks to calm financial markets regarding Chinese companies. Chinese officials say short-term market panic is not a long-term threat, and Beijing remains supportive of domestic companies seeking foreign listings, and regulators will soon present additional measures to further open the capital market to foreign companies. Considering this news, China’s blue-chip index increased by 1.4%, Shanghai Composite index increased by 1.1%. Chinese companies, which are traded in the US stock market, also showed growth.
The quarantine is being prolonged again in Sydney. Analysts believe that such isolation measures will undoubtedly have a negative impact on the national economy in the coming months. The Reserve Bank of Australia (RBA) is likely to postpone reducing assets scheduled for September.
Main market quotes:
S&P 500 (F) 4,400.64 -0.82 (-0.02%)
Dow Jones 34,930.93 -127.59 (-0.36%)
DAX 15,570.36 +51.23 (+0.33%)
FTSE 100 7,016.63 +20.55 (+0.29%)
USD Index 92.26 -0.17 (-0.19%)
- – Germany Unemployment Rate (m/m) at 10:55 (GMT+3);
- – Germany Consumer Price Index (m/m) at 15:00 (GMT+3);
- – US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
- – US GDP (q/q) at 15:30 (GMT+3);
- – US Pending Home Sales (m/m) at 17:00 (GMT+3);
- – US Natural Gas Storage (w/w) at 17:30 (GMT+3).
by JustForex
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
- Gold Prices Rise Amid Weakening US Dollar and Geopolitical Tensions Nov 29, 2024
- As expected, the RBNZ cut the rate by 0.5%. Australia’s inflation rate remained at its lowest level since the summer of 2021 Nov 27, 2024
- EUR/USD Steady Ahead of Major US Data Releases Nov 27, 2024
- NZD/USD Hits Yearly Low Amid US Dollar Strength Nov 26, 2024
- Trump plans to raise tariffs by 10% on goods from China and 25% on goods from Mexico and Canada Nov 26, 2024
- Fast fashion may seem cheap, but it’s taking a costly toll on the planet − and on millions of young customers Nov 25, 2024
- “Trump trades” and geopolitics are the key factors driving market activity Nov 25, 2024
- EUR/USD Amid Slowing European Economy Nov 25, 2024
- COT Metals Charts: Weekly Speculator Changes led by Platinum Nov 23, 2024
- COT Bonds Charts: Speculator Bets led lower by 5-Year & 10-Year Bonds Nov 23, 2024