Market situation at the end of the European session

18.09.2019 / 18:18

Rating:

Bonds are rising today as stocks struggle to get out of the red, pending the Federal Reserve's decision on interest rates and the ensuing press conference. The event is today at 21:00. The Fed is expected to cut interest rates again and suggest a further easing of monetary policy.

US indices are down, with FedEx leading the decline after halving its growth forecasts. Government securities are globally up, with yields on 10-year US bonds falling below 1.8%. The jump came after the Fed had to inject money to calm the money markets on Tuesday, and yesterday they repeated the intervention.

The mass expectation today is the Fed cutting interest rates by about 25 basis points. But according to economists, the central bank may increase its buy-back program to stabilize the volatile repo market. Traders are also watching the huge shortage of oil shortages to weigh on the global economy, as well as expect news of the trade war - the US and China are expected to meet in October.

Marketers will want to hear from the Fed that they will be able to respond when needed. We see obvious cracks in the manufacturing sector and the trade balance, as well as some, minimal, weakening of the labor market.

The S & P500 is down about 0.2%, DJIA and NDAQ are down 0.2 - 0.3%. Stoxx Europe 600 ended the European session with an increase of 0.1%. The dollar index rose by about 0.1%. The British pound is down 0.2%, the euro declining by about 0.1%. The Japanese yen fell by 0.1%. West Texas Intermediate oil is down about 1% and gold is up about 04%.

Source: Bloomberg Finance L.P.

Graphs: Used with permission of Bloomberg Finance L.P.

Trader Martin Nikolov

Read more:

RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.

WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.

Varchev Finance

Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.

Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006

The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Disclaimer:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Market situation at the end of the European session

London

Universal numbers