Stocks are rising following Federal Reserve Chair Janet Yellen’s speech yesterday. Yellen was more positive than investors were expecting, which sent US treasury prices lower. The chair noted that encouraging economic data could cause the Fed to raise rates, adding that it is unwise to wait too long to do so, or risk sending the economy into a recession.
Yellen’s hawkish comments didn’t impress the dollar, however. The greenback barley nudged after the statement. The EURUSD is now trading downwards, at $1.056.
US indices have enjoyed an upswing, reaping the positive tones set by the Fed.
- S&P 500 is up 0.08%, trading at $2337.50
- DJ30 is up 0.122% trading at 20514
- Nasdaq 1000 is up 0.11%, trading at 5280
European Equities Elevate
Moving across the pond, the positivity has seeped into European equities. Indices are marching upwards this morning, as investors ignore the geopolitical risks across the region.
- CAC 40 is trading up 0.06%, at €4910.50
- FTSE 100 up 0.15%, trading at €7235.00
- DJ Euro Stoxx 50 up 0.3%, trading a €3326
Asian Assets Advance
Beijing – Asian markets climb on Tuesday, inspired by the positive sentiments from Yellen. Chinese consumer inflation moved higher, causing investors to wonder if the Chinese central bank will raise rates or fiddle with access to credit, to help tighten the overheated economy.
- MSCI is trading upwards at ¥363.70
- SPI 200 trading upwards at $5745
Market Watchlist
General Motors (NYSE:GM) jumped 5.01% this morning. The rally came after news that PSA Group is mulling over an Opel takeover. Opel is General Motor’s losing European component.
News Today
- 13:30 (GMT) US Core CPI
- 15:30 (GMT) Federal Reserve Chair Janet Yellen Speaks
- 15:30 (GMT) Crude oil inventories