FED Archives - The Industry Spread

Gold Drops Below $1,500, Asian Equities Mixed

November 6, 2019

Asian equity indices ended mixed today on upbeat earnings results, and improved sentiment as investors digest the 25 basis point to 1.50%-1.75% from Fed. Yesterday, the US ISM Non-Manufacturing PMI registered at 54.7 topping expectations of 53.5 in October and despite JOLTS Job Openings came in at 7.024M below expectations of 7.028M in September.

Equities Rally Continues, Bitcoin Price in Bullish Momentum

November 5, 2019

Asian equity indices ended higher today on improved sentiment as investors digest the 25 basis point to 1.50%-1.75% from the Fed. U.S. The non-farm payrolls rose by better than expected 128,000 for October compared to expectations for an increase of 89,000. GDP for Q3 expanded at a 1.9%, slowing from 2% in the Q2 but came in above market forecasts for growth of 1.6%. 

Asian Equities Higher, Gold Consolidates Above $1,500 

November 4, 2019

Asian equity indices ended higher today, mirroring Wall Street Friday’s gains as investors digest the 25 basis point to 1.50%-1.75% from the Fed. The U.S non-farm payrolls rose by better than expected 128,000 for October compared to expectations for an increase of 89,000. GDP for Q3 expanded at a 1.9%, slowing from 2% in the Q2 but came in above market forecasts for growth of 1.6%. 

European Equities Start Lower after the Fed cut Interest Rates by 0.25%

October 31, 2019

Asian equity indices ended mostly higher today after Fed delivered the 25 basis point to 1.50%-1.75% as widely expected by the markets, and signalled that it will not proceed with further cuts to see whether these easing steps are enough to sustain the economic growth. U.S. GDP for Q3 expanded at a 1.9%, slowing from 2% in the Q2 but came in above market forecasts for growth of 1.6%. Jerome Powell pointed out several reasons why he feels the US economy is doing well, such as robust consumer spending, strengthening home sales, and healthy asset prices.

Equities Mixed on Caution ahead of Central Bank Updates

October 31, 2019

Global equity market saw major stocks and key indices trade and close in red today over-cautious investor sentiment. Aside from caution influenced by expectations surrounding central bank updates, back to back conflicting headlines surrounding Sino-U.S. trade deal also came as a serious blow to investor risk appetite. While US President Trump hinted at the possibility of partial deal being signed earlier than expected, China’s reluctance to commit on big purchases of American farm products and reports from US official who said interim trade deal might not be completed in time for signing in Chile next month as expected earlier caused optimism surrounding trade deal to fade away.

Asian Stocks Retreat Ahead of Fed Decision

October 30, 2019

Asian equity indices ended lower today as traders expect a 25 bps cut from Fed to protect the economy from slowing growth and the effects of the trade tensions, Markets now put only about a 30% chance of another rate cut in December, compared with about 70% earlier this month. Rumours that a “phase one” deal might not be ready to be signed at the Asia-Pacific Economic Cooperation summit in Chile in November weigh on stocks.

Asian Equities Higher Ahead of ECB Decision

October 24, 2019

Asian equity indices ended mostly higher today ahead of the ECB meeting later today and while investors await that the Fed will cut interest rates by 25 bps next week. Investors increased their bets the Fed will cut interest rates by 25 bp at its next meeting on October to protect the economy from slowing growth and the effects of the trade tensions.

Brexit Agreement on Table, Risky Assets Higher

October 17, 2019

Asian Indices ended mixed today as investors turn cautious amid confusing headlines around the Brexit deal. Meanwhile, doubts emerged about the US and China partial trade deal. China wants to proceed with further discussions before signing the phase one trade deal.

Forex and Equity Markets Quiet Ahead of China-USA Trade Talks

October 11, 2019

Asian Indices and Nikkei 225 benchmark in Tokyo ended higher today trades talks resume in Washington. Fed Chair Jerome Powell signalled further interest rate cuts and the resumption of bond purchases. The US-China relations is set to be the key driver of sentiment over the coming days with the trade delegation meeting later today.