Market players seek direction after US fed’s announcement

Market players seek direction after US fed’s announcement

2021-06-18 12:55:00 PM

Market players seek direction after US fed’s announcement

Stocks in London fell after data showed UK retail sales fell unexpectedly in May as a lifting of lockdown restrictions encouraged spending in restaurants rather than shops

Agency StaffPicture: 123RF/DANIIL PESHKOVLondon — Stocks were stranded just below record highs on Friday, with investors left looking for direction after digesting the US Federal Reserve’s more hawkish stance.The pan-European Stoxx index of shares eased 0.19% to 458.50 points, barely below Monday’s record high of 460.51.

COVID-19 fourth wave likely in December, say health experts Silver in the bag: Tatjana Schoenmaker delivers SA’s first medal at Tokyo Olympics | Citypress Under Wraps

“I would not expect too much of a change,” Michael Hewson, chief market analyst at CMC Markets, said of the market.“What has the Fed said that is particularly upsetting in terms of the outlook for interest rates and monetary policy? We are still talking 18 months’ time. It suggests the economy is improving and that is a good thing,” Hewson said.

The MSCI world equity index was off 0.13% at 713.97 points after hitting a record high of 722.32 on Tuesday, while Paris and Frankfurt were little changed.Stocks in London fell 0.4% after data showed British retail sales fell unexpectedly in May as a lifting of lockdown restrictions encouraged spending in restaurants rather than shops, with Tesco down 1.8%. headtopics.com

Britain’s biggest retailer reported a sharp slowdown in underlying UK sales growth in its first quarter, reflecting a tough comparison with the same quarter last year when consumers stocked up in the country's first Covid-19 lockdown.The dollar was heading for its best week in nearly nine months as investors priced in a sooner-than-expected ending to extraordinary US monetary stimulus.

Strength in the greenback pushed oil lower for a second straight session, while spot gold remained down around 5% for the week after the Fed dented gold’s safe haven appeal.No major data is expected and corporate news was thin, leaving investors to continue pondering what the Fed’s comments will mean for the assets they hold in coming months.

Inflation genieWhile the Fed messaging indicated no clear end to supportive policy measures such as bond buying, signals of faster-than-expected rate hikes indicated its concern about inflation as the US economy recovers from the Covid-19 pandemic.“What is pretty obvious is that the inflation genie is starting to sneak out of the bottle, and that will be a major driver of interest rates in the short to medium term,” said James McGlew, executive director of corporate stockbroking at Argonaut in Perth.

In Europe, analysts were already asking if the Bank of England, whose monetary policy committee meets next week, will follow in the Fed's footsteps and adopt a more bullish tone on the economy and what that would mean for the path of UK stimulus and interest rates. headtopics.com

Record-shattering heatwaves caused by pace of warming: study COVID-19 | 7,773 new cases recorded in SA FBI tracks down Cape Town mom who allegedly sold naked pics of her daughter, 4 | News24

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan was flat after falling for four sessions.Chinese blue-chip A shares were also little changed, along with Japan's Nikkei.Gold prices, which plunged following the Fed comments, edged higher but were still set for their worst week since March 2020. Spot gold was last up 1% at $1,790/oz.

Hopes for a strong US recovery pushed technology stocks higher on Thursday, lifting the Nasdaq Composite up 0.87%. But worries about inflation and higher rates weighed on the broader market, with the S&P 500 edging down 0.04%. The Dow Jones Industrial Average fell 0.62%.

Higher expectations of inflation continued to lift long-dated US. Treasury yields. Benchmark 10-year notes yielded 1.4802%, off 0.031 from a close of 1.511% on Thursday.The dollar pulled back against the yen to ¥110.02, and the euro was flat at $1.1914.

Oil prices took a hit from the strong dollar as concerns over demand and new Iranian supply also weighed.Global benchmark Brent crude was down 0.68% at $72.63 a barrel after settling at its highest price since April 2019 on Wednesday. US West Texas Intermediate crude, which touched its highest level since October 2018 on Wednesday, shed 0.42% to $70.74. headtopics.com

Read more: Business Day »

5 ways to help after the devastating looting in KZN

Communities in KwaZulu-Natal are desperate for even the most basic food staples after a week of devastating looting and violence. In honour of Mandela Day, and in the spirit of Ubuntu, here are five ways you can help out.

Volkswagen switches on to US marketCarmaker gears up for Biden’s $174bn plan to accelerate move to electric vehicles

Volkswagen switches on to US marketCarmaker gears up for Biden’s $174bn plan to accelerate move to electric vehicles

The Underground Railroad: For us, not by us | CitypressThis big budget show boasts an elaborate set and all the immersive trimmings of a show based on slavery. We’re taken to Georgia in the south of the US, and the height of slavery wherein the story of a young girl, Cora – played by South African actress Thuso Mbedu – comes to life like a moving mural. For all those who are new to this working from home Bitcoin trading options Here's a little tip: Get a trusted Bitcoin expert and stick to him Blakescott64 Invest and play at similar times each day. Because : In times of chaos, your investment is your anchor to success

Upbeat Goldman beefs up SA office to vie for market shareThe US bank, which has had a presence in the country for more than 20 years, is ramping up its operations

Egypt souvenir market pins hopes on tourism resurgenceEgypt's souvenir-makers are pinning their hopes on a new lease of economic life after tourism was battered by the coronavirus pandemic.

Upbeat Goldman beefs up SA office to vie for market shareThe US bank, which has had a presence in the country for more than 20 years, is ramping up its operations There is no greater joy than having financial Freedom and a life free of debts that’s why I keep posting a comment about JAmSRcharD