Mixed Markets
Equity markets have lifted slightly this morning, leaving the underwhelming performance of yesterday’s trading day behind. Glimmers of the trump trade can still be seen as equities emerge from the rubble, brought on by North Korea’s ballistic missile launch. Traders are refocusing their attention, focusing now on the hawkish Federal Reserve.
The liklihood of a March rate hike now resides at around 85%. We can assume the cost of borrowing will rise, thanks to the stream of hints the Federal Reserve has given over the past few weeks – most importantly Janet Yellen’s suggestive statements. The Fed are not known for shocking markets with surprise rate increases, instead the body prefer to ensure markets are ready for the change.
While US equities are not enjoying phenomenal gains, the DJ 30 is still tantalisingly close to reaching $21000. The S&P 500 is also nearing its target range of $2400.
- The S&P 500 is up 0.05%, at $2372.00
- The DJ 30 is up 0.09%, at $20938.00
- The Nasdaq 100 is up 0.05%, at $5355.50
- The Russell 2000 is up 0.13%, at $1381.00
Asian markets are regaining momentum, shaking off the uneasy start to the week and grappling onto gains.
Markets are unsure whether to drift into bearish terrain or to stay on course veering even higher as the Trump rally roars on.
European markets are on the bearish side, holding their breath for the monetary policy decision, released on Thursday. Losses are not vast, which means there is still time left in the trading day for a change in rhetoric from European investors.
- DAX 30 is level at €11977.50. The index is flirting with an upward trend as the trading day advances.
- CAC 40 is down 0.52%, at €4960.50
- FTSE 100 is down 0.04, trading at €7347.00
- FTSE MIB is down 0.12%, trading at €19385
The pause in bullish sentiment may be fleeting, however there is mass criticism of the rally that has been seen in 2017. Investors may give into the negative waves of headline news that has masked economic data this year.
Commodity Corner
Crude Oil continues to trade between the narrow range of around $52-$54 dollars per barrel. The commodity is in the middle of the spectrum this morning, at $53.25.
Gold is trending downwards this morning. The safe-haven commodity was unstirred by the calamities this week. Gold is now trading at $1223.14, that’s a decrease of 0.11%.