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Saturday, 20 October 05:50 (GMT -05:00)



Stock and commodities markets

Market Reaction to Zero Change in Fed’s Rate


 

The Fed’s decision to preserve the key interest rate unchanged at 1,25% has had a positive impact on American and international markets.

 

 
The recent 2-day FOMC meeting resulted in the decision to avoid any interest rate changes this time. For those of you who don’t know, the Federal Reserve has already raised the key interest rate twice this year. The first interest rate hike took place in March, when the central bank raised it from 0,75% up to 1%. The second one took place in June, when the central bank raised it from 1% up to 1,25%. In 2015 and 2016, the Fed raised the rate once a year. The next FOMC meeting is scheduled for December 2017.
 
The FOMC members state that the U.S. labor market is currently strong while the economic activity is at the stage of moderate growth. their long-term inflation expectations haven’t changed since the last meeting. This year, consumer inflation is not going to exceed the 2% threshold. As for the U.S. GDP forecast, it was raised from 2,25 up to 2,4% during the FOMC meeting. The unemployment forecast remains unchanged at 4,3%.
 
In response to the Fed’s decision, the stock indexes started growing and reached major highs. For instance, the Dow Jones Industrial Average reached 22412,59 points (+0,19%). S&P 500 reached 2508,24 points (+0,06%).
 
At the same time, oil prices slowed down their rally and retraced a bit after the FOMC meeting minutes were released. Brent and WTI slowed down form 2,23% and 2,02% down to 1,85% and 1,38% respectively. At the same time, the U.S. Dollar resumed its rally against other financial assets.

 

 

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OPEC Loses Grip on Global Energy Market

According to many international experts, the OPEC, which used to be in charge of the global energy market, now seems to be losing its control over it. The cartel is yet to fight for its place under the sun amid a new pricing-regulation reality.

Publication date: 29 July 11:16 AM

USA Will Dominate Global Oil Market, IEA Says

Over the next 5 years, the United States will dominate the global market of crude oil. Up to 80% of the global oil demand growth will be covered by American oil companies, Bloomberg reports with reference to the International Energy Agency.

Publication date: 19 April 07:11 AM

Global Trade War Will Push Gold Price to $1400/oz

According to Bloomberg and some other online sources, the global trade war started by Donald Trump will eventually increase the dollar value of gold. In particular, they say that the price of gold may reach the 5-year high in the near future.

Publication date: 04 April 01:21 AM

OPEC Is Ready To Ask American Shale Oil Companies Not To Boost Their Oil Production

According to the Energy Minister of the UAE, the OPEC is ready to start asking American shale oil producers to stop boosting their shale oil production. The statement was made during the International Petroleum Week (IP Week).

Publication date: 06 March 10:29 AM

Shale Oil Threatens with an Oil Market Crash to 2014 Levels

The two years' period of moderately high oil prices is about to be over, the International Energy Agency assumes. They say that the global supply is likely to exceed the global demand, which will push down oil prices, may be even to the levels of 2014.

Publication date: 05 March 03:50 AM

Alpari Signs Up Russian Sportscaster Vasili Utkin

lpari has always been known for partnering with celebrities. This time this major forex brand has teamed up with famous Russian sportscaster Vasili Utkin. The partnership agreement is valid until the end of 2018.


Publication date: 05 March 01:45 AM

Oil Prices Will Be Affected By Geopolitical Risks in 2018

The end of 2017 was clearly positive for oil-exporting nations. For example, Brent oil futures traded at 66,60 dollars per barrels on December 29th. Will the existing bullish trend persist in 2018? 

Publication date: 16 January 06:32 AM

Euro Exchange Rate Reaches Highest Level Since Late 2014

The common European currency keeps on growing driven by the news on the formation of a new German government. The price rally started in 2017. At the same time, experts are getting more and more optimistic about the prospects of the Eurozone and the European Union in general, Deutsche Welle reports.


Publication date: 16 January 01:49 AM

Experts Criticize OPEC+ Agreement for Unpredictable Outcomes

OPEC exporters may beat the target related to the OPEC+ agreement, which now seems to be a point of concern for international investors, The Wall Street Journal reports.

Publication date: 27 November 05:06 AM

U.S. Investigation of Offshore Capitals May Ruin Putin’s Regime, Aslund Says

The international expert community has been busy discussing the search of Russian offshore capitals by Americans. Anders Aslund assumes that this investigation may eventually put an end to Putin’s regime.

 

 

 


Publication date: 06 September 11:37 PM