Markets are mixed heading into an uncertain and surely tumultuous day in markets.
On the anniversary of Julius Caeser’s death, Europe once again faces into uncertain and potentially historical times.
The European Union’s first obstacle of 2017, the Dutch elections. Traders will watch closely as the ballots are counted, as populist candidate Geert Wilders has promised to take the Netherlands out of the EU if elected.
The Netherlands will choose between far-right candidate Geert Wilders and current prime minister Mark Rutte. The polls show that the race is almost tied.
European equities are mostly trading lower this morning as fears of a fractured Europe amplify.
Keeping with European politics, the pound is clinging onto gains after yesterday’s dive. Sterling came close to seven-week lows after Scotland threatened to leave the UK in favour of remaining in the EU. As the Brexit saga thickens, FTSE 100 is moving upwards at £7284.00.
Meanwhile, oil is trying its best to shake off the over-supply concerns that pushed the commodity down earlier this week. Crude oil slipped out of its tight range of $52-$55 per barrel. Traders are anxious that the US shale industry will hinder any supply-cut measures that OPEC have taken. Additionally, traders are unconvinced of OPEC’s unity, Saudi production went up in February, battering the idea that members can adhere to agreements.
As for the number playing on everyone’s minds – the federal fund’s rate decision, due to be released later today. While an interest rate hike is almost certain, traders will be more interested in what Janet Yellen says in the statement and press conference, as well as if the forecasts for future rate hikes have changed. The dollar is tipping downwards, as traders are unwilling to make bold decisions in the run up to the announcement.
US equities are edging upwards after yesterday’s subdued trading session.
- Nasdaq 100 up 0.14% at $5394.25
- S&P 500 up 0.13% at $2366.75
- DJ 30 up 0.1% at $20829.00
- Russell 2000 up 0.25% at $1365.20
With all the uncertainty in the market you would think that gold would be shooting upwards. The safe-haven commodity is still weighed down, stuck at $1201.20 per bullion. However, the trading day has just begun and there is plenty of time for the precious metal to make a comeback.
News Today
12:30 (GMT) Core CPI m/m
14:.30 (GMT) Crude Oil Inventories
18:00 (GMT) Federal Funds Rate