Market Snapshot – Markets Relatively Calm Ahead of FOMC

Stock Markets Buoyant

The stocks market in the various parts of the world had a decent turnaround today as the increase in risk appetite helped the investors to buy more and more into stocks. With the Fed meeting scheduled for tomorrow, the buyers do not want to commit themselves too much at this stage and that is why the rebound has not been as strong as some would have expected. The markets are still not sure whether there would be a rate hike tomorrow and even if yes, it remains to be seen what would be the forward guidance of the Fed.

Cautious Trading Ahead of FOMC

The trading in general, across all markets is understandably cautious as the traders and the markets await the crucial Fed decision tomorrow. Most of the markets have already priced in a rate hike from the Fed though the Fed has not yet given any definitive nod to the same. Even if the Fed were to hike rates, the market would also be watching out for the accompanying statement to see what the odds are for further rate hikes this year. The economic data has been a bit iffy over the last couple of months and that is the reason why the dollar buyers do not want to commit themselves too much.

Gold Prices Consolidate

Gold prices continued to hold steady over the last couple of days as the commodity markets also await the FOMC. A hawkish Fed would give the go-ahead for the dollar bulls and this could put the gold prices under serious pressure whereas a lack of rate hike or a bearish forward guidance would help the prices to push higher.