Stock markets paused before the fed’s meeting
Before the end of the U.S. Federal reserve meeting the markets took a pause. The meeting will decide the fate of monetary policy a global regulator that will determine the entire global economy.
The signals that the base refinance rate will be reduced, no. However, bad macroeconomic statistics only fuels the confidence of bidders on wall street.
They think the fed will go on about them and reduce the rate if not tomorrow, then at least in the foreseeable future – in July. So yesterday the Index of business activity in industry FRB of new York fell to a record low in negative territory. Its value was 8.6 points, and stock analysts expected a decline to 10.0 points. A month earlier, the index has fallen to a mark of 17.8 points.
The market implicitly believes that the rate will be lower, and three times. In my opinion, this week it is important to hear what it will say on the Backup system.
The second plan was pushed foreign trade confrontation between the US and China, which is not quite correct. It will have an effect. For example, something clear by tomorrow night, and after the end of the G20 summit will be exactly clear where we’re headed.
We maintain our recommendation for the sale of the us S&P 500 index, as it has already played the positive expectations of global investors from the fed meeting. However, there are always nuances, but that’s a separate topic for conversation.
Head of analytical Department,
“International financial center”