Market Snapshot – Focus on Yellen Later in the Day

Asian Stocks Higher on Improved Sentiment

The Asian stock markets rose higher due to better than expected corporate earnings and also due to the lessening of the risk in the region as Trump tried to extend an olive branch to North Korea. This region has seen a lot of tension in recent times due to the missile tests from North Korea and the escalating tension between them and the US. So any form of measures that would help to reduce tension is likely to buoy the stock markets. Some of this effect has also been felt in the European stock markets which have been trading in a steady manner since the beginning of their respective trading sessions and this is expected to continue in the US session as well.

Market Waiting for Hike Confirmation

The focus of the day is likely to be one the speeches from Poloz and Yellen late in the day. We have already seen the speech from Draghi and that has not had much of an effect on the market so far. But with the tax reforms looming and with the door still open for a rate hike in December, it is likely that the speech from Yellen would be more closely watched for any hints which would confirm the hike. The incoming data is still choppy and this has led to the doubts on the hike persisting and hence the market would like to have some confirmation from somewhere so that it could begin pricing it in.