Eyes moving towards the Federal and Asian stock exchanges are in red area
Eyes moving towards the Federal and Asian stock exchanges are in the red area
Eyes are moving towards Federal and Asian stock exchanges are in the red area:
This evening, Federal Reserve will issue a report shortly after the start of the US trillion economic stimulus program
on the future interest rate.
Experts expect that monetary authorities surrounding Federal Reserve Chairman Jerome Powell
will maintain the main rate of monetary policy at zero levels to 0.25 %.
At the same time, they are likely to keep monthly security purchases worth $ 120 billion.
Economic prospects have been improved because of the US vaccination campaign
and stimulus package worth $1.9 trillion which was presented by US President Joe Biden.
Evest is following up with you all this and more through this matter.
Oil is rising amid a sudden decline in American stocks
World oil prices slightly rose this morning, as investors are evaluating US Petroleum Institute (API)
data regarding the unexpected decline in US crude inventories.
May futures for North Sea crude oil rose by 0.03% to record $68.4,
while April futures for West Texas Intermediate crude oil rose by 0.19% to reach $ 64.91 a barrel.
Traders are assessing the US Petroleum Institute’s latest data
which indicates a decline in US oil reserves by 1 million barrels last week, while analysts expected its growth.
The US Energy Administration
US Energy Administration will publish official data this evening.
Experts expect that Administration will announce a decline in these reserves by 2.97 million barrels.
Analysts believe that the most active growth in oil prices is hampered by gaining profits.
After rising in oil prices this year, it is not surprising to slightly retreat because of waves of profit-taking.
Joe Biden’s Administration
On other hand, Joe Biden’s Administration is considering raising Federal taxes for companies, high earners,
and fuel in order to pay costs for a long-term economic program.
If this program is approved and implemented, it would have created negative effects on fuel consumption,
including crude oil in the market.
In addition, a series of European countries such as Germany,
France and Italy suddenly announced a suspension of the AstraZeneca vaccine for the Covid-19 epidemic.
This by its turn led to rising concerns about the negative development of the epidemic which caused many fears,
affecting crude oil consumption.
Epidemics led to a decrease in demand for oil.
Oil prices have been rebounded to their levels before the global health crisis, but momentum was limited because of slow progress in the deployment of vaccines in many countries as well as the suspension of AstraZeneca vaccination.
Investors are concerned that slow vaccination rates in European Union may harm this recovery and demand for oil.
In the case of high numbers of new Covid-19 cases, there are doubts about an expected strong recovery,
at least in the second quarter of 2021, when further restrictions or taking a decision regarding it, is discussed in Europe.
Gold is slightly retreating
Gold prices fell today because of the power of the US dollar in the context of investors’ waiting for indicators of the US Federal Reserve Policy Meeting.
At the end of yesterday’s session, the immediate price of gold was declined by 0.2% to record $ 1729.01 an ounce.
Gold futures prices rose by 0.1% to close at $ 1730.90 an ounce.
US dollar by 0.1. This led to an increase in the cost of gold tenure.
Federal Open Market Meeting (FMC)
Federal Open Market Meeting (FMC) which lasts for 2 days is ended on March 17, it is expected to reiterate its commitment to maintaining interest rates close to 0% until the economy reaches a full level of employment.
Some analysts expect that gold prices and US government bond revenues can be rising during the next few months, as returns can approach 2%.
A strong wave of purchase in stock markets may stop, while gold regains its appeal as a safe haven.
The collective decline in Asian indicators
This morning, In Asia, investors remain careful.
In Japan, the Nikkei index fell by 0.2%, while the broader Topix index decreased by 0.1%.
In China, Shanghai Composite Index retreated by 0.2%, while CSI 300 index rose by 0.3%.
In Hong Kong, the Hang Seng index fell by 0.2%.
In South Korea, the Kospi index fell by 0.6%.
S&P /ASX 200 index declined by 0.5%.
Stock Exchange in Singapore fell by 0.1%.
Japanese exports are suffering from a sharp decline in Japanese foreign trade more than expected
in February due to a decline in demand from China and the USA.
Last month, exports retreated by 4.5% on an annual basis, according to data from the Japanese Ministry of Finance on Wednesday.
Nasdaq survives landing alone
There were minor changes in New York Stock Exchange on Tuesday.
Investors are clearly waiting for Powell’s announcement after today’s meeting regarding interest rates.
Dow Jones index
Dow Jones index declined by 0.39% to record 32825.82 points, while Standard and Poor’s 500 indexes fell by 0.16% to trade at 3962.64 points.
Nasdaq Composite for heavy technology rose by 0.09% to record 13471.57 points.
Jerome Powell’s statement
At a macroeconomic level, the Federal Reserve interest rates decision is to focus on, besides Jerome Powell’s statement after the meeting.
American housing construction figures in February will be announced today afternoon.
VIX index, which is also known as the “Fear Index”, fell to its lowest level since the beginning of the Coronavirus epidemic.
DAX index is stable in pre-market indicators.
German DAX index is expected to start trading close to its highest new record at mid-week.
According to pre-market indices, the German Standard index is expected to start at about 14,550 points in the morning.
This is almost the same closing of the previous day.