Market Snapshot – Markets Choppy Ahead of FOMC

The stock markets in Europe seem to be following the currency markets in a close manner. There are times when such things happen and it looks as though this is one of those times asthe stock markets begin to stablilise and get used to the higher volume trading that is coming into the markets at this point of time. Over the last couple of weeks, the markets have been pushed and pulled this way and that on the back of low volume and we have been advising our traders to stay away from the markets so that they dont get caught in all this action. It is only now that the real volume is beginning to return to the markets and we are likely to see some serious action going forward.

The markets are looking forward to the FOMC meeting minutes later in the US session as the US stock markets begin to near record highs. The market would be seeing how hawkish the Fed would be with regard to the rate hike in March and also the expectation for 3 rate hikes from the Fed during the course of the year. There is likely to be quite a bit of uncertainty in this matter and the market would hope that some of that would get cleared today.