403
Sorry!!
Error! We're sorry, but the page you were
looking for doesn't exist.
Global markets experience mixed trajectory ahead of crucial monetary policy decisions
(MENAFN) Global markets experienced a mixed trajectory ahead of crucial monetary policy decisions from the Federal Reserve and the bank of Japan (BoJ) scheduled for Wednesday, signaling the nearing end of the global battle against inflation.
The Federal Reserve is anticipated to maintain its policy rate unchanged at 5.25 percent to 5.50 percent in this final meeting of the year, but the impact on asset prices will largely hinge on the Fed's economic projections and remarks by Chairman Jerome Powell. Market expectations suggest the Fed might implement three interest rate cuts before the year's end, with further insights expected from the upcoming employment report on Friday, which could influence future policy decisions.
Additionally, the release of financial reports from major US corporations, including Microsoft, Apple, Amazon, and Meta Platforms, is likely to drive increased volatility in stock prices and sectors. This anticipated earnings season could significantly affect market sentiment and trading patterns.
In the bond markets, activity remained subdued ahead of the Fed's policy announcement, with the US 10-Year Treasury yield holding steady at 4.18 percent. The US Dollar Index is at 104.6, reflecting a stable currency stance. Meanwhile, precious metals and oil prices showed modest movements; gold traded at USD2,387 per ounce, marking a 0.2 percent increase, while Brent crude oil remained flat at USD78.60 per barrel.
On the New York Stock Exchange, Monday saw the Nasdaq and S&P 500 indexes each rise by 0.07 percent, while the Dow Jones Index declined by 0.12 percent. US index futures began Tuesday on a downward trend, reflecting broader market uncertainties.
In Europe, stock markets followed a predominantly bearish trend on Monday, excluding the UK. Investors' focus shifted to economic performance in Germany and the broader eurozone. Recent economic data has heightened concerns about economic activity in Europe, with further data releases expected to provide critical insights into the European Central Bank's future policy directions. Analysts are closely watching these developments to gauge potential shifts in the ECB's monetary policy strategy.
The Federal Reserve is anticipated to maintain its policy rate unchanged at 5.25 percent to 5.50 percent in this final meeting of the year, but the impact on asset prices will largely hinge on the Fed's economic projections and remarks by Chairman Jerome Powell. Market expectations suggest the Fed might implement three interest rate cuts before the year's end, with further insights expected from the upcoming employment report on Friday, which could influence future policy decisions.
Additionally, the release of financial reports from major US corporations, including Microsoft, Apple, Amazon, and Meta Platforms, is likely to drive increased volatility in stock prices and sectors. This anticipated earnings season could significantly affect market sentiment and trading patterns.
In the bond markets, activity remained subdued ahead of the Fed's policy announcement, with the US 10-Year Treasury yield holding steady at 4.18 percent. The US Dollar Index is at 104.6, reflecting a stable currency stance. Meanwhile, precious metals and oil prices showed modest movements; gold traded at USD2,387 per ounce, marking a 0.2 percent increase, while Brent crude oil remained flat at USD78.60 per barrel.
On the New York Stock Exchange, Monday saw the Nasdaq and S&P 500 indexes each rise by 0.07 percent, while the Dow Jones Index declined by 0.12 percent. US index futures began Tuesday on a downward trend, reflecting broader market uncertainties.
In Europe, stock markets followed a predominantly bearish trend on Monday, excluding the UK. Investors' focus shifted to economic performance in Germany and the broader eurozone. Recent economic data has heightened concerns about economic activity in Europe, with further data releases expected to provide critical insights into the European Central Bank's future policy directions. Analysts are closely watching these developments to gauge potential shifts in the ECB's monetary policy strategy.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.
Comments
No comment