Market Snapshot – A Light Day on The Calendar

Stock Markets Buoyant

The stock markets continue to rally around the world as the US stock indexes touch and go beyond their all time highs building on the momentum that came about last week. The Fed did try to put a spoke in the wheel by hiking the rates but the Fed members have been confident that the monetary expansion still has a long way to run in different parts of the world and that has helped to boost the stock markets. The DAX and the FTSE continue to trade strongly with especially the DAX set to make new all time highs.

Dollar Driven by Fed

It has been a very light day as far as economic data is concerned and this is only to be expected as we are into the second half of the month when the economic data dries up and the volatility in the markets also lessen as compared to the first half. The dollar is being driven by the Fed which has been hawkish since last week and this hawkish tone has been continued by the different Fed members ever since. This has helped the dollar to continue to build on its strength over the last couple of days and this theme is seen right across the markets over this period and likely to continue in the short term as well.

Gold Prices Slip

Gold prices have taken a pounding as the strength of the dollar has begun to show on the prices and with the dollar strength expected to continue and with the gold prices having broken through the crucial 1248 region, we are looking at the 1220 region to serve as the support once again and this region has been the battle ground for the bulls and the bears many a time before.