Sunday , January 29 2023

The Federal Bank's message disappoints the market and Vall Street closes with losses of almost 2%


The last meeting of the monetary policy of the Federal Reserve strongly affected the investors' mood. This, given that the market was expecting to see an even more moderate Fed due to signs of slowing down the economy.

At the end of trading, Dov Jones indicated 1.49%, while the S & P500 lost 1.54%. In the meantime, Nasdak achieved 2.17%.

While the projections of the Federal Committee for the Movement of the Course in 2019 predict two increases instead of three, this did not calm down the investor's nervousness. The market consortium bet only on an increase for the next year, given the signs of lower economic growth.

In this way, a message from the US central office opened a wave of sales on the beach in New York, given the suspicion that a monetary adjustment policy might have an impact on economic performance. According to Bloomberg, investors expected "even less aggressive" approach.

Earnings in Europe

In the meantime, Old Continent's stock exchanges are forgiven for the rise in positive signals in the commercial war and before the Fed message. Euro Stokk 50 – which gathers 50 most important companies in the Euro zone – rejected the session with an increase of 0.37%. While Cac 40 from France and Dak from Germany advanced from 0.49% and 0.24%, respectively.

Completion of commercial war? The US and China set the next meeting for January

In addition to the lesser fears of a commercial conflict, another engine pushing the squares of the old continent is an agreement Italy has made with the European Union for the 2019 budget.

Italy has reached an agreement with Europe on the budget in 2019

Despite the good weather at the beginning of the session, the main Asian indicators are closed on mixed terrain. Japanese Nikkei achieved a low level of 0.60%. In the meantime, Hang Seng from Hong Kong grew by 0.20%, while the CSI 300 in Shanghai fell by 1.19%. According to Bloomberg, the performance is explained by the disappointing debut of the telecommunications business of the Japanese group SoftBank.

As for the commodity market, oil prices have fallen since yesterday's sharp fall. VTI – offered in the United States – closed with a 2% increase and stood at $ 47.2 for a barrel, while Brent climbed to 1.74% to $ 57.24 in Europe.

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