by JustForex
The central bank is monitoring inflation but is in no hurry to raise interest rates. That’s the bottom line from yesterday’s speech by the chairman of the US Federal Reserve to Congress. It should be noted that the Federal Reserve is guided by the Phillips curve, which illustrates the relationship between the rate of inflation and the rate of unemployment. If the unemployment rate rises, the inflation rate will also be high. Once the labor market data turn out to be positive and the unemployment rate falls, inflation will also follow a downward trend. For this reason, fundamentally, inflation has temporary nature. At the end of the day, the US stock indices closed in a positive zone, while the NASDAQ tech index hit a new all-time high.
European stocks were mostly rising on Tuesday. Investors closely followed Powell’s testimony and after the speech, when it became clear that the soft monetary policy is still in force, the euro and the British pound currency futures quotes started to rise. A lot of macroeconomic statistics in Europe are expected to be released today.
The pause in the negotiations on the Iran nuclear deal has a favorable effect on the growth of oil prices, which are at a 2-year high. With continued fuel shortages, the uptrend in oil will continue.
Powell’s comments halted the rise in the dollar index and lowered the US Treasury yields, which is positive for gold and silver. Gold is now trading in a range, but analysts are confident that as soon as the dollar index starts to fall back to previous levels, the uptrend in the precious metals will resume.
Asian stock indexes also rose on Tuesday. Japan’s Nikkei 225 increased by 1.3%, China’s CSI 300 added 0.35% and Australia’s ASX200 jumped by 2%. The situation in the Asia-Pacific countries remains the same.
Free Reports:
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Main market quotes:
S&P 500 (F) 4,246.44 +21.65 (+0.51%)
Dow Jones 33,945.58 +68.61 (+0.20%)
DAX 15,636.33 +33.09 (+0.21%)
FTSE 100 7,090.01 +27.72 (+0.39%)
USD Index 91.74 -0.16 (-0.18%)
- – France Manufacturing PMI (m/m) at 10:15 (GMT+3);
- – Germany Manufacturing PMI (m/m) at 10:30 (GMT+3);
- – Eurozone Manufacturing PMI (m/m) at 11:00 (GMT+3);
- – UK Manufacturing PMI (m/m) at 11:30 (GMT+3);
- – UK Service PMI (m/m) at 11:30 (GMT+3);
- – Canada Retail Sales (m/m) at 15:30 (GMT+3);
- – US Manufacturing PMI (m/m) at 16:45 (GMT+3);
- – US Service PMI (m/m) at 16:45 (GMT+3);
- – US New Home Sales (m/m) at 17:00 (GMT+3);
- – US Crude Oil Inventories (w/w) at 17:30 (GMT+3).
by JustForex
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
- TSLA shares rose on a weak report. Inflationary pressures are easing in Australia Apr 24, 2024
- USDJPY: On intervention watch Apr 24, 2024
- Euro gains against the dollar amid mixed economic signals Apr 24, 2024
- PMI data is the focus of investors’ attention today. Turkey, Iraq, Qatar, and UAE signed a transportation agreement Apr 23, 2024
- Australian dollar rises on strong economic indicators Apr 23, 2024
- Geopolitical risks in the Middle East are declining. China kept interest rates at lows Apr 22, 2024
- Brent crude dips to four-week low amid easing geopolitical tensions Apr 22, 2024
- COT Metals Charts: Speculator bets led by Copper & Silver Apr 20, 2024
- COT Bonds Charts: Speculator bets led by 10-Year Bonds & Fed Funds Apr 20, 2024
- COT Stock Market Charts: Speculator bets led by S&P500-Mini Apr 20, 2024