The dollar is trading downwards for the fourth session in a row. The greenback is struggling under the weight of last week’s US interest rate decision. The Federal Reserve made no changes to the median or the ‘’dot plot’’, in other words, the Fed indicated that there is no change in the forecast of rate hikes for the next two years. The market had anticipated that there could be as many as four rate hikes in 2017. However, after last week’s meeting, there will likely be 2-3 increases in the cost of borrowing this year.
Over the weekend, the G20, a body of global finance ministers and central bankers, met to mull over global economic issues. While the press are not allowed to attend the meeting, statements on behalf of the body are released. The major take-away from the conference was the lack of commitment the members made to free and open global trade. This, coupled with growing nationalist and protectionist policies from the Trump administration sent global equities lower.
Volatility is low as traders retreat, unable to make bold moves in this bearish market.
- CAC 40 is down 0.2% at €5005.00
- DAX 30 is down 0.14% at €12090.50
- FTSE MIB is down 0.22% at €19605
- FTSE 100 is down 0.2% at £7336.00
- S&P 500 is down 0.2% at $2371.00
- DJ 30 is down 0.11% at $20844
- Russel 2000 is down 0.3% at $1386.00
Crude oil is still struggling below the $50 mark. The commodity is unable to shake-off the over-supply woes that were sparked last week. Oil has found a new equilibrium at around $48 per barrel as it loses the volatility that it briefly found last week.
Gold has made a tremendous recovery from trading at $1203 last week. The commodity is now trading at $1232.43. The weaker dollar and the rising concern over the recovery of the global economy have helped elevate the precious metal. Investors stream money into the commodity during times of uncertainty, making it a safe-haven.
News Today
20:30 AUD Monetary Policy Meeting Minutes