- Home
- >
- Fundamental Analysis
- >
- The market’s sentiment just before the bell in the U.S. markets
The market's sentiment just before the bell in the U.S. markets
Rating:
Loading...Global stocks paused near record highs as worries over China's banking system provided an excuse for investors to lock in some profits. The dollar was set for its best week of the year on bets the Federal Reserve will raise U.S. interest rates in June.
A dip on Wall Street overnight on signs of weak consumer spending and waning enthusiasm over the recovery in European corporate earnings has put MSCI's gauge of world stock markets on track for its first weekly loss in four.
China's banking regulator this week launched emergency risk assessments of lenders' new business practices, sources told Reuters, as Beijing extends its crackdown on shadow banking. For now this leads only to a short-term rising in JPY and GOLD and is not considered as a risk to the markets.
With corporate earnings seasons in the U.S. and Europe drawing to a close investors, focus is likely to shift back to central banks, particularly in the United States, where inflation pressures are growing.
U.S. data on Thursday showed producer prices rebounded more than expected last month, leading to the biggest annual gain in five years.
Combined with a tightening labor market, firming inflation backs market expectations that the Federal Reserve will raise interest rates at its meeting next month. The central bank has forecast two more increases this year after raising rates a quarter of a point in March.
The stronger fundamentals in the U.S. helped offset uneasiness over political turmoil after President Donald Trump abruptly fired FBI chief James Comey.
Today's retail sales data disappointed the investors, which may lower the chances of another rate hike, which can take JPY higher against USD and GBP. It is possible to see test of the 113.00 levels against the USD
Sterling was steady on the day at $1.2886 (GBP=) after dropping to a one-week low on Thursday following the Bank of England's decision to keep interest rates unchanged. Policymakers indicated that rates were unlikely to rise until late 2019.
Oil prices held recent gains as traders expected OPEC-led production cuts to extend beyond the middle of this year and as U.S. crude inventories fell to their lowest levels since February.
Jr Trader Alexander Kumanov
Varchev Traders Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
