Equites are climbing after the S&P 500 jumped to new highs last week. Overall, markets are bullish, supported by positive economic data and inflationary environments.
Traders must view charts as a way of identifying trading opportunities. The charts will help to recognise what type of market the instrument is in. Investors will find either a strong support and resistance, where the stock is struggling to breach the ceiling and floor. The alternative is a market where the price is steadily moving higher or lower, continually making new highs and no new lows or vice versa.
A savvy trader’s dream, a novice trader’s nightmare.
The Federal Reserve sent the likelihood of a March interest rate hike up to almost 50%. Janet Yellen exuded confidence in the US economic climate, adding that it would be unwise to wait too long before increasing rates.
The Federal Reserve’s hawkish comments shot up the likelihood of rate hike in March. Additionally, US consumer prices exceeded analyst’s expectations, soaring to the highest point in four years. Despite the flurry of positive news for the US economy, the greenback is edging downwards, unimpressed by the rhetoric of a strengthened economy.
Stocks are rising following Federal Reserve Chair Janet Yellen’s speech yesterday. Yellen was more positive than investors were expecting, which sent US treasury prices lower. The chair noted that encouraging economic data could cause the Fed to raise rates, adding that it is unwise to wait too long to do so, or risk sending the economy into a recession.
After a public dispute broke out last week between the IMF and Brussels, Greece’s debt was dragged back into headlines.
Investors hold their breath, awaiting Janet Yellen’s speech later today. The market is subdued, following the dollar’s command as the currency drags equities lower.
After failing to predict the two biggest market movers of 2016; Brexit and the election of Donald Trump. Investors are much more wary of the populist movement brewing in France.
Japan’s GDP sent equities higher this morning. Reports showed that Japan’s GDP rose 0.2% in the fourth quarter of 2016. The growth derives from an increase in exports due to a weaker yen however, the data shows that domestic demand is lagging. Japan had a 1% GDP growth for 2016. This suggests that the Bank of Japan will not change its monetary policy in the near future.