HFM information and reviews
HFM
96%
Octa information and reviews
Octa
94%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%

Wild, wobbly, or whimpering Wednesday?


28 April 2021

Asian stocks and US equity futures are mixed as investors brace for the imminent cross-currents today, including Fed Chair Jerome Powell’s policy outlook, US President Joe Biden’s spending plans, and more Big Tech earnings releases. Amid the slew of headline-grabbing events slated for Wednesday, markets are also contending with rising Treasury yields, with 10-year yields breaking above the psychological 1.60 level to hit its highest levels in two weeks. However, the VIX has pushed deeper into the sub-20 region, which suggests an expected calm in equities over the coming 30 days despite the potential volatility triggers lined up for today.

The positive after-hours reaction to Alphabet’s blockbuster earnings report and its $50 billion share buyback announcement suggests some support for benchmark US indexes. However, that could be offset by the post-market declines in Microsoft’s stock prices despite its better-than-expected Q1 results.

Fed unlikely to rock the boat

The FOMC is widely expected to leave its policy settings unchanged at today’s meeting, with Chair Powell likely to stick to his script and pledge the Fed’s persistently accommodative stance. Yet markets are ready to pounce on even the slightest hint of policy normalization amid an economic recovery that is gaining more and more traction.

The onus is on the Fed to clearly convey its intentions for QE tapering and rate hikes, or risk whipsawing markets into a frenzy. While such commentary is likely still some way out, that isn’t stopping investors from already framing their expectations for such eventualities for US monetary policy, especially if the hard data continues to show the US taking bigger strides into the post-pandemic era. Thursday’s release of the US Q1 GDP and the weekly jobless claims print could buffer the optimistic outlook for the US economy, while also feeding into the market’s expectations for the Fed’s eventual policy adjustments.

Tax hike fears loom over Biden’s speech

When US President Joe Biden addresses Congress for the first time as POTUS today, investors won’t just be considering the implications of his “American Families Plan” on the US economy, but also on how such spending plans are to be funded. Since last week, investors have been mulling the prospects of a capital gains tax hike, alongside the already-proposed corporate tax increase, which could have a dampening effect on bullish sentiment surrounding US equities moving forward.

While the S&P 500 and the Dow are still likelier to post fresh record highs over the near-term, the tech-heavy Nasdaq could be particularly weighed down considering that Big Tech appears to be prime targets for when the tax man comes a calling.

Oil slips after OPEC+ decision to stay the course

Both Brent and WTI futures are paring some of Tuesday’s gains, after OPEC+ decided to press on with restoring more of their supplies over the next 3 months. The alliance appears confident that global supply-demand conditions can absorb the additional barrels, despite the persistently disconcerting developments surrounding the Covid-19 pandemic in major economies such as India and Brazil.

The incoming supplies indicates that $70 Brent is one step too far for the time being, barring surer signs that more countries can earnestly partake in the global economic recovery.

The continued rollout of the vaccine, coupled with the eventual loosening of Covid-19 curbing measures, are needed to justify to gradual rise in oil production. Markets must also continue believing that the global demand recovery remains on track in order to keep Brent prices above its 50-day moving average.

#source

Share: Tweet this or Share on Facebook


Related

Yen stabilizes as Japan ramps up intervention warning
Yen stabilizes as Japan ramps up intervention warning

Threats of FX intervention help yen to stabilize near three-decade lows. Dollar and stocks take a step back, Bitcoin jumps in anticipation of halving. Shortage of liquidity could be an important market theme this week.

26 Mar 2024

Stocks at fresh records even as dollar bounces back
Stocks at fresh records even as dollar bounces back

Wall Street leads rally in equity markets, fuelled by rate cut optimism. US dollar stages surprise rebound amid US exceptionalism. Pound slides on BoE's dovish tilt, yen steadies, PBOC loosens grip on yuan.

22 Mar 2024

Dollar rises as Fed enters spotlight, yen plummets
Dollar rises as Fed enters spotlight, yen plummets

US dollar gains as traders brace for hawkish Fed. Yen tumbles despite BoJ's historic decision. Loonie slides on cooler than expected Canadian inflation. Wall Street gains ahead of Fed, oil extends advance.

20 Mar 2024

BoJ hikes, scraps yield curve control, but yen slumps

BoJ ends negative rates and yield curve control in historic move, but yen can't catch a break as Ueda signals ongoing accommodative stance.

19 Mar 2024

Dollar recovers, equities stall after US data releases
Dollar recovers, equities stall after US data releases

Dollar stages comeback as US data fuels speculation of fewer Fed cuts. Stocks and Bitcoin take a step back, oil climbs after Ukraine drone attacks. Yen traders play the guessing game ahead of next week's rate decision.

15 Mar 2024

US PPI and retail sales data enter the limelight
US PPI and retail sales data enter the limelight

After hot CPI inflation, dollar awaits PPI and retail sales data. Yen on the back foot as BoJ March hike bets decrease - S&P 500 and Nasdaq pull back, gold rebounds

14 Mar 2024


Forex Forecasts

MultiBank Group information and reviews
MultiBank Group
84%
XM information and reviews
XM
82%
FP Markets information and reviews
FP Markets
81%
FXTM information and reviews
FXTM
80%
AMarkets information and reviews
AMarkets
79%
BlackBull information and reviews
BlackBull
78%

© 2006-2024 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.