The US stock market demonstrates the balance
Yesterday almost all the players on wall street pausing after a two-month rally. The week probably will be marked by global negotiations and macroeconomic data. Most players will shift focus from the relations between the US and China on the other, not less interesting negotiations – Ministry of foreign Affairs of the DPRK, which will be held in Vietnam on February 27-28. In the coming days we will also hear from the fed Chairman Jerome Powell – he will speak before both houses of Congress. Investors will expect its comments on reducing the fed’s balance sheet.
The second half of the week will be filled with publications of important statistics on the state of the US economy. The most interesting block in this series of numbers will be the assessment of U.S. GDP for the 4th quarter of last year.
A two-day briefing by the head of the American monetary regulator starts today. Jerome Powell will read the semi-annual report on monetary policy to the Senate banking Committee. The market is not waiting for intrigue. It is believed that rhetoric will be standard, and the fed will prefer a patient approach to raising interest rates, and the assessments will be based on the macroeconomic picture. Thus, the real economy will completely determine monetary policy, the financial regulator of the United States.
Donald trump is already accustomed to being a newsmaker. He stated that he is satisfied with the relations with the DPRK, as North Korea will not be testing nuclear weapons. However, as always, he left room for maneuver. Now the US President is in no hurry to conclude a nuclear deal with Kim Jong-UN. Negotiations of heads of two States will be held in Hanoi this week, eight months after the historic summit in Singapore, which was the first in the modern history of a meeting of leaders of the United States and the DPRK.
Markets equilibrium. The index of wide market S&P 500 is already at levels that we predicted in early January. The only risk factor for the stock market may be the dynamics of prices for raw materials, which is rapidly reacted to the words of Donald trump on OPEC policy. Oil prices started the week with a decent negative for only one session of the Monday quotations Brent have decreased on 3%.
Some traders fear that as a result of volatility with the commodity market will flop on other trading platforms. The formal reason for such a reaction to individual traders and the whole market were the words of Donald trump – he advised OPEC to calm down and reminded about the weakness of the economy, which can not accept the high prices. The appeal was made, of course, through social networks.
The head of the analytical Department of the company,
“International financial center”