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- American trading session closed lower – Attention towards Jackson hole
American trading session closed lower - Attention towards Jackson hole
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Loading...American stocks closed lower today, due to the planned event in Jackson Hole. If Janet Yellen's tone is positive for the economy and the inflation we might see continuation of the correction of the markets. But it has to be in parallel with a signal for possibly higher rates and stronger USD. The markets are now pricing in only a 30% chance for higher interest rates for a third rise this year, as the inflation figures are below FED's target of 2%. It is more likely to see higher indices again and lower USD. The fight between the Republicans and Democrats in Washington continuous and its very hard for the Trump's administration to complete its reforms and that is the root of the USD weakness. Investors turn their attention to the economic factors, as the tensions around N. Korea died down. Retailer's stocks jumped, after the figures show that sales were not as bad as they were anticipated. Traders also watching closely the discussions around the debt ceiling, after the President's comments for the appropriation of funds for the wall between USA and Mexico.
DJIA: -28.69 points/ -0.13% - 21,783.40
S&P: -5.07 points/ -0.21% - 2,438.97
NASDAQ: -7.08 points/ -0.11% - 6,271.33
RUSS 2000: 3.96 points/ 0.29% - 1,373.67
VIX: 12.47
The S&P showed only one positive area and that is the health sector by 0.28%, all other areas were weaker today, with the consumer staples down by -1.34%.
For Dow Jones, higher was trading the energy stocks by 0.30% and the most loss showed consumer staples by -0.88%.
The price of Oil is trading lower down to $47.60 per barrel, today after it corrected higher close to the $50, but it could not hold to its gains. As the month of September approaches, the hurricane season starts and that can support the oil price, as the storms normally disrupt the oil supply. The USD remains weak, but today it showed some strength. Our expectations remain negative in the short term, until we see clear signals for a turn of the negative trend. The Euro continue to trade higher and we expect this to continue. Now we will look closely at the price action to see if it is due for a correction or it will continue higher to the next target near $1.20
Source of the graph: Bloomberg Pro Terminal
Trader - S. Fuchedzhiev
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