The us stock market experienced an impressive rally
The us stock market experienced an impressive rally Tuesday, causing stocks S&P500 and DJI at the end of the day 2.2%.
The enthusiasm of the participants was based on a strong start to the reporting season of the largest companies. Market expectations have surpassed the figures for Johnson & Johnson (a positive signal in respect of the demand of households) and Goldman Sachs Group Inc. (good news for the banking sector). In addition, the positive tone of the markets after their closure was supported by the rise of Netflix stock. The company’s shares on the private pre-bids, add 12%, pulling behind itself quotations of other IT giants.
Regular statistics from the USA also managed to maintain a positive attitude. According to reports the Bureau of labor statistics, the Number of jobs in the USA updated historical record in August. Industrial production adds the 4 th consecutive month, adding to September of 0.3%.
In contrast, data from Europe was not so rosy. The index of business sentiment in Germany from ZEW fell 14.1 points to the July lows.
The uncertainty in world trade greatly suppresses the optimism of export-oriented business in the country. Also on the single currency under pressure weak results party in local elections in the regions of Germany.
As a result, the Euro failed to hold the levels above 1.16000 dollar. On Wednesday, the beginning of the European session, EURUSD is trading near 1.1550, despite the recovery of demand for risks that often plays against the U.S. currency.
Also on the agenda is the publication of the protocols of the fed, according to the results of the September meeting. It is expected that the Committee will retain its bias to tighten monetary policy in December, and several more increases next year. In this case, trump loses its grip, almost every day criticizing the fed. Still, these comments did not exert long-lasting effects on the stock markets and the dollar. It is likely that further markets are more likely to respond to the comments of the fed than the President’s statements about the dollar.