Stock exchange at a loss after the fed’s decision on rates

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Investors with new power ran from the risks, reacting suddenly cheerful mood of the Federal reserve. Instead of zoom on the impending pause in the policy tightening, the US Central Bank just revised its plans from three to two raises the stakes. This situation was not liked by the investors, who immediately began to “deal” with the stock. In the end, the indexes on wall street slipped impressive, setting the tone in Asia and then in Europe, where futures are losing an average of 1.5%.
The Russian market also got off on the wrong foot. Index Mosberg falling by 1.2% and the RTS sags by 0.8%. In addition to the external background, the domestic benchmarks adversely affected by the failure of oil prices to find a bottom and go to full recovery. Yesterday’s rebound, which was almost completely played out by the end of the day, is understandable not impressed with the market. During the day, global markets will continue to react unexpectedly optimistic rhetoric of the fed, although at the opening of wall street, there’s a chance of easing the selling pressure.
In this case, our indices can cut intraday losses by the end of the session.
Of the main events before the end of the week it is worth noting today’s meeting of the Bank of England, report on US employment from ADP, which precede a key release on the us labor market is NFP, which can be up to a dollar if the growth rates of employment and salaries will not disappoint and will live up to yesterday’s optimistic fed.
In the case of the Bank of England’s players will be interested not so much the regulator’s decision, which will leave the rate unchanged, how much inflation forecasts and statements on the economy and Brekzita. In the case of negative tone, the pound risks stop growing and go into the red zone on the weekly charts.
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Nathan Lambert
Head of research,
Global FX