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Future edge higher in bounce after Fed-triggered swoon by Reuters

© Reuters. Traders Work At New York NYSE Floor By Medha Singh (Reuters) – US stock futures lined higher on Thursday after a sharp recovery in the previous session after the Federal Reserve had stuck on its plan to retain [19659004] Fed raised interest rates on Wednesday and projected two increases next year instead of three but what haunted the markets was Fed Chairman Jerome Powell said the central bank would maintain its balance sheet on the autopilot. The spread of rising borrowing costs increased only to concern for reducing corporate earnings growth next year, due to growth rising, with increased fear of a recession in China's background -OSS trade war and a host of other geopolitical problems. "Investors were expecting a more dovish tone from Powell in view of the sharp decline in stock markets and challenging global macroeconomic conditions. All they got was a less hawkish tone," said Hussein Sayed, Marketing Manager at FXTM. US stocks closed on the news, with Dow Jones Industrial Average () closing at its lowest since November last year, and Dow Jones Transport () closes almost 21 percent below its record high, confirming the bear area. The reference index S & P 500 index () was 14.5 percent lower from its record closure high on September 20th, with 298 components now down 20 percent or more from its 52 week high. While futures ticked higher on Thursday, it remains to see if the winnings will last. In what has been a turbulent month…


© Reuters. Traders Work At New York NYSE Floor

By Medha Singh

(Reuters) – US stock futures lined higher on Thursday after a sharp recovery in the previous session after the Federal Reserve had stuck on its plan to retain [19659004] Fed raised interest rates on Wednesday and projected two increases next year instead of three but what haunted the markets was Fed Chairman Jerome Powell said the central bank would maintain its balance sheet on the autopilot.

The spread of rising borrowing costs increased only to concern for reducing corporate earnings growth next year, due to growth rising, with increased fear of a recession in China’s background -OSS trade war and a host of other geopolitical problems.

“Investors were expecting a more dovish tone from Powell in view of the sharp decline in stock markets and challenging global macroeconomic conditions. All they got was a less hawkish tone,” said Hussein Sayed, Marketing Manager at FXTM.

US stocks closed on the news, with Dow Jones Industrial Average () closing at its lowest since November last year, and Dow Jones Transport () closes almost 21

percent below its record high, confirming the bear area.

The reference index S & P 500 index () was 14.5 percent lower from its record closure high on September 20th, with 298 components now down 20 percent or more from its 52 week high.

While futures ticked higher on Thursday, it remains to see if the winnings will last. In what has been a turbulent month for US stocks, the market has more often than not failed to build on an uptick in early trading.

At 7:09 ET, Dow e-minis () was 59 points, or 0.25 percent. The S & P 500 e-minis () increased by 7 points or 0.28 percent and the Nasdaq 100 e-minis () was 25.5 points or 0.4 percent.

The rate was raised along with anxiety over a superintendence sent oil prices more than 3 percent. Oil Major Exxon Mobile Corp. (N 🙂 fell 0.2 percent.

Altria Group Inc (N 🙂 dropped 0.3 percent after the tobacco giant said it would pay $ 12.8 billion for a 35 percent share in e-cigarette launch Juul Labs Inc.

On the economic front, the first requirements for statutory unemployment benefits for the week of December 15 are expected to rise to 216,000 from 206,000 a week before. The information is due at 8:30 AM ET.

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