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Powell policy remarks, stock price rebounds due to increase in oil

New York: At a rally later in the session on Tuesday, Federal Reserve Board Chair Jerome Powell calmed fears of rising interest rates that helped ruin bonds and spur assets associated with strong recovery expectations. Later, the gauge of the global stock market rebounded.

Copper, a leading indicator of the business cycle, reached a nine-and-a-half-year high before restraining its early rise, but crude oil settled near the break-even point. However, oil rose as the Dow and S & P 500 went into the black and Tesla regained its steepest losses.

Bright Trading LLC’s proprietary trading firm Dennis Dick said investors were rewarded for doing so when stocks fell by just 3% to 4%, especially in the last 6 months and 10 years. I learned to buy.

“It’s very difficult to get on a bear train,” Dick said. “When you start getting a little ugly, there are many rewards for buying a dip.”

Powell told the U.S. Senate Banking Commission that the recovery remains “uneven and far from complete,” and it will take “a while” for the Fed to consider policy changes aimed at achieving full employment. I told him to do it.

Michael Alone, chief investment strategist at State Street Global Advisors in Boston, believes monetary policy needs to be supportive, there is a long way to go to repair the job market, and before inflation is a concern. ..

“I don’t anticipate any immediate changes in monetary policy,” Arone said, a view that should ease market concerns that the Fed could raise interest rates to curb inflation.

MSCI’s global equity market benchmark was up 0.04% to 674.03, while the Dow Jones Industrial Average rose 0.05% and the S & P 500 rose 0.13%.

Tech stocks have fallen as investors have sold their recent winners and rotated them into assets that are expected to succeed in improving the economy. Technology-intensive Nasdaq fell 0.5%, while tech stocks fell 3.7% in Europe, recording the worst two-day decline in four months.

The broad FTS Eurofirst300 index fell 0.46% to 1,583.81, but rising borrowing rates led to higher bank stocks and the Spanish banking index rose 1.7%.

Gold fell as the dollar rebounded from a six-week low and other precious metals also fell. The 15.2% surge at one point showed a degree of market instability, as reflected in Cboe’s Market Volatility Index, and fell 1.4%.

Tesla shares fell into the red this year, hit by a 11.4% plunge in Bitcoin. Tesla was down 2.2% to $ 698.84.

Electric car makers have recently invested $ 1.5 billion in cryptocurrencies, but this has diminished as investors became nervous about their ultra-high valuations.

After the European Central Bank’s governor Christine Lagarde was uncomfortable with the recent surge in yields and hit a high for the first time in eight months, the 10-year Bund yield returned to a recent uptrend, ending at -0.314%. did.

After Powell’s comment, US yields fell slightly.

Yields jumped from less than 1% at the beginning of the year to 1.394%, feared that the Federal Reserve would crack down on inflationary pressures by pushing up borrowing costs. 10-year Treasuries fell 1.7 basis points to 1.3517%.

Oil prices were temporarily 1 due to optimism about the deployment of the COVID-19 vaccine and lower production as US supply slowed to return after a severe freeze in Texas last week stopped crude oil production. It has risen over the dollar.

Brent crude oil futures rose 13 cents to settle at $ 65.37 a barrel, while US crude oil futures fell 3 cents to settle at $ 61.67 a barrel. Brent and US crude rose in after-hours trading.

In the currency market, commodity-related currencies remained close to their first highs in years, while the dollar in early trading temporarily fell to its lowest level since January 13.

The dollar index rose 0.128% and the euro fell 0.1% to $ 1.2142. The Japanese yen fell 0.20% against the dollar at 105.25 dollars.

US gold futures fell 0.1% to trade at $ 1,805.90 an ounce.

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Powell policy remarks, stock price rebounds due to increase in oil

Source link Powell policy remarks, stock price rebounds due to increase in oil

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