Stocks peak after the speech Powell
The fed’s Jerome Powell has reinforced investors ‘ expectations in reducing the rates until the end of July. Noting good actual state of the economy, he added that a trade war is holding back the business from the purchase of equipment. In addition, companies in the fight for market share afraid to raise prices and wages, which forms a space for policy easing. The willingness to reduce the rate removed the last fears the most cautious of market participants and launched a new round of rally, affecting a wide range of tools from the dollar and stock indices to commodities.
The stock market
S&P500 intra-day on Wednesday rewrote the record highs once again climbing above 3000. The index was subjected to a corrective pullback at the close of the American session but the futures in the morning on Thursday returned to historical highs. Dow Jones also marking the highs. However, caution players during the American session and lethargic dynamics of the Asian indices on Thursday morning tune in a cautious tone. The China A50 was under pressure after the positive start of trading. Nikkei225 is improving but is still below 0.4% of the opening level of the week.
The publication of Colin Powell’s speech launched a new round of dollar weakness. EURUSD turned to growth from the levels near 1.1200, and on Thursday morning has risen to 1.1280. Judging by how wide was the influence of the speech of the head of the fed to the markets, the momentum of decline in USD may be lengthy.
Among the important resistance levels it is necessary to highlight the 1.1315 level, through which passes the 200-day average (an important indicator of medium-term trends) and 1.1400 – the upper boundary of the trading range since February.
Gold jumped on Wednesday to 2.5%, the sudden movement interrupting the corrective pullback and returning to region 6-year highs. How quickly resumed purchases of Gold, in response to remarks by the fed that makes us think that the markets still do not miss this metal from your focus. In these circumstances, it is possible that today may be another assault on the multi-year highs near 1440.
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