By IFCMarkets
The Fed’s announcement according to its meeting minutes had almost no effect on the dynamics of stock trading, but affected the Forex market.
On Wednesday, the recent trend continued in the US financial markets. Stock prices rose, while the US dollar index continued to decline. The Fed announcement according to its meeting minutes had almost no effect on the dynamics of stock trading, but affected the Forex market. As expected, the interest rate remained unchanged at 1-1.25%. In general, the Fed did not say anything new about its future plans and the US economic state. Further monetary policy tightening may be delayed amid low inflation in the US and very moderate economic growth. The dollar exchange rate updated its 13-month low. Since the beginning of this year, its index fell by 8.5%. The rise in the US stock market was supported by positive reports of AT & T and Boeing companies by 5% and 10%, respectively. Today, the US dollar demonstrates a slight strengthening expecting the publication of economic statistics, which is expected to be positive. At 14-30 CET, the data on durable goods orders, wholesale inventories and trade balance for June, as well as weekly unemployment will be released. This morning, the social network Facebook reported for Q2, 2017. Its indicators exceeded forecasts, which contributed to the growth of its shares in the OTC market. Futures for US stock indices are currently “in the black.” After the closing of today’s trading the quarterly reports of major US companies such as Amazon, Intel, Starbucks and Mattel will be released. They may affect the market dynamics.
Today, most European stock indices are rising for the 4th consecutive day.
The European stock indices rose yesterday following the US. The euro updated its 23-month high. No significant economic statistics came out in the Eurozone, the European assets were traded under the influence of the information from the US. On Wednesday, the positive quarterly report of the French automaker Peugeot came out. Its shares went up by 3.2% and contributed to the growth of the entire European automobile sector. Today, the European stock index STOXX 50 continues to grow. German DAX index fell on the background of the weak reports of BASF and Deutsche Bank. The Swiss franc fell against the euro to the lowest level since January, 2015. This was contributed by the Swiss National Bank statement that it is not going to tighten monetary policy following the example of the ECB plans. The British pound rose to the 10-month high against the US dollar. This was contributed by investors’ expectations concerning the Bank of England rate hike in the coming months.
Today Nikkei has grown alongside with other world stock indices. The stocks of the video game maker Nintendo rose by 7.6% due to good quarterly reports. The prices of Hitachi Kokusai Electric grew on the background of its own positive forecast of financial indicators for the current year. Today the yen showed a slight weakening within the narrow neutral range. Tomorrow morning at 1:30 and 1-50 CET important economic data on unemployment, inflation and retail sales will be published in Japan.
Gold prices updated the 6-week high on the background of the US dollar weakening. An additional positive factor for it was the growth of gold import to China over Hong Kong by 55.8% in June of this year compared with May. According to GFMS, the world demand for physical gold in the first half of 2017 increased by 17% compared to the same period of the last year and amounted to 1895 tonnes. Strangely enough, the reserves of the world’s largest gold fund SPDR Gold Trust continue to decline despite the increase in gold prices. Probably, some of major players expect a downward correction.
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