The US Federal Reserve is expected to announce early termination of the balance sheet contraction in the near future, and that Washington will temporarily end its longest-running government closure in US history. height.
(New York, June 26) The US Federal Reserve will soon announce the end of measures to reduce the balance sheet and news that the longest-running government closures in US history will be temporarily ended did. US stocks closed higher on Friday.
The three major US stock indices rose, while the Dow Jones industrial average and the Nasdaq rose for the fifth consecutive week. However, the S & P 500 index rose for the first time in four weeks at the beginning of the year.
January 29 Fed Meeting (2 days)
The Dow Jones industrial average rose 183.96, or 0.75 percent, to 24,737.2. The Standard & Poor's 500 gained 22.43, or 0.84 percent, to 2,664.76. The Nasdaq Composite Index was up 91.40, or 1.29 percent, at 7,164.86.
The Dow Jones industrial average rose 0.09%, the index was down 0.26% and the Nasdaq was up 0.11%.
The Wall Street Journal reported on Friday that it will not be able to raise interest rates, and the Treasury will focus on how to handle the balance sheet and decide whether to include a balance sheet. Maintaining a high level before the financial tsunami occurs means that the contraction is done early.
Whether Powell will explain the latest contraction time to the press after this meeting depends on the progress of the discussion. The Fed began to shrink in October 2017, and Powell predicted it would be completed in three to four years.
Gold price rise
US bond prices fell and yields rose. The 10 – year US Treasury bond yield climbed 3.7bp during the day, once higher by more than 2.75%, and the US dollar fell to 96.0. The dollar fell and raised gold prices. Spot gold increased by more than 1% to $ 1,300.
After the US President Trump agreed to pursue a three-week mid-term funding plan for the resumption of congressional members and the government, the stock index plunged at a high level.
Investor confidence has been shaken by the recent government closure and anxiety due to trade tensions between China and the United States.
"As some uncertainties in the market begin to disappear, we will have a clearer understanding of the development of the future situation,
Charlie Ripley, senior market strategist at Allianz Investment Management, said, "And the news that the government ended the lock today undoubtedly alleviated some of the uncertainty above."
"But it is most likely that uncertainty still exists because the government is a temporary measure to raise money," Ripley added.
In this uncertainty, the ongoing trade dispute between the United States and China still worries investors.
At the closing of the World Economic Forum in Davos, Switzerland, business leaders said they were "fed up" by Trump policy, expressing concern over trade warfare.
According to Reuters' survey of a number of economists around the world, the global economic downturn is likely to worsen as the wars between Central and South America widen.
In the fourth quarter, the corporate earnings season was full-blown and over 22% of the S & P 500 companies reported earnings. 72.3% of the results surpass analyst expectations.
New Gum Daily / Finance ‧2019.01.26