Investors Turn Cautious and Wall Street Awaits, US Futures Higher despite Hawkish Fed

Global equities have struggled early today after the publication from the Federal Reserve via their Meeting Minutes.
Yaron Mazor
wall street23

The U.S Dollar has been stronger. GDP data from the U.K missed its estimate. Weekly jobs numbers will come from the States today.

Global Equities Struggle after Fed Report, Wall Street Reverses Lower

Global equities have sold off this morning. The Nikkei Index declined by more than a percent, and the Hang Seng fell nearly 1 and a half percent. European equities have also produced selling. French Consumer Price Index statistics were lackluster with a result of minus 0.1%. And a German Business Climate reading missed its estimate. Wall Street was positive most of Wednesday, but upon investors digesting the Federal Reserve’s Meeting Minutes the three major indexes experienced strong momentum downwards. Wall Street is expected to open with further headwinds per indicators coming from the Futures Markets.

U.S Dollar Reacts in Strong Fashion, Disappointing U.K Business Sentiment

Forex has provided pure fireworks the past day. The U.S Dollar became stronger late last night as investors began to react to the renewed prospects of a few interest rate hikes in the States. The Pound and Euro have been trading relatively calmly the past couple of hours, but remain below yesterday’s higher values. Second Estimate GDP results came from the U.K this morning and were slightly below expectations. And a Business Investment survey, also from Britain proved disappointing. The Yen has been slightly stronger as risk adverse trading dominated Asian equity markets today.

Near-Term Appears Vulnerable to Gold, Steady Decline and Headwinds

A strong reversal took place for Gold late on Wednesday. After initially gaining upon the Federal Reserve’s report, the precious metal began a steady decline and headwinds have continued. Gold is near 1321.00 U.S Dollars an ounce and looks vulnerable for the near term.

Canadian Retail Sales Statistics, Weekly Unemployment Numbers from the U.S

Crude Oil Inventories data will come from the U.S at 16:00 GMT and could provide insights for commodity traders.

  • 13:30 PM GMT Canada, Core Retail Sales
  • 13:30 PM GMT U.S, Unemployment Claims
  • 16:00 PM GMT U.S, Crude Oil Inventories

Yaron Mazor is a senior analyst at SuperTraderTV.

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