The US stock market: the Future of the fed meeting investors are annoying
The us stock market against the background of global corporate spending for redemption by corporations of their shares, while obviously not seeking to look at the levels in 10-year treasuries, and by inertia continues to buy shares on wall Street. It should be noted that in the current year, American corporations have spent almost the maximum amount for probably the entire history of wall Street to buy back their assets on the open market.
Meanwhile, the yield levels in the 10-year Treasury obligations of the U.S. Treasury Department, moving up, signaling the release of a number of global investors from the debt of the United States. Levels of profitability this morning, getting to the marks in 3,055%, which is clearly not the levels in 2,888 at the beginning of August.
Investors probably started to get nervous about the upcoming next week’s meeting of the American regulator – the U.S. Federal reserve meeting which the market expects the next increase of base discount rate by 0.25 basis points to a level of 2.0 – 2.25%, which is already partly embedded in the shared expectations of the current market. The meeting is scheduled for 25 – 27 September.
But the most interesting will probably be a press release following the meeting and promising of out-bow from the fed with their opinion on the General state of the US economy and the main point of this press release is a General expectation and the prospect of the next meeting.
Meanwhile, in Russia there is a clear pent-up demand for Russian assets, which after the summit of the WEF-2018 Vladivostok is clearly demand from global investors that the expression of the growth rate of the national currency from the extreme levels at 70.5 rubles per one American dollar to the current levels at 67.0 rubles.
The index of the Moscow exchange, calculated in rubles rewrites absolute historic heights, and the major traded products in Russia since last week are traded with a clear increase.
Around the world, and primarily in the US, at some time forgot about the fed and foreign trade wars between the US and China, and also all the sanctions right along.
Me personally, steadily haunted is an explicit commitment to an optimistic perception of the overall picture of the world, and primarily from the United States. Thunder not far off – and it clearly breaks out.
Head of analytical Department,
“International financial center”