The Fed has delivered on what they promised and traders celebrated their encouraging strategy. The mood is that the Fed is confident about their approach and they do believe that this leap of faith is the correct strategy. However, what investors really like was their most ultra dovish tone and Janet Yellen’s effort to assure the market that the Fed is still very accommodating and their balance sheet is not going to lose any weight yet.Read More
All eyes will be on one element, which is what the Fed is going to do today? Market participants are expecting that the Fed will raise the rates today and as they have been preparing the markets for a long time. However, there are still many thinking that the Fed may use their element of surprise and use some sort of excuse to delay this.Read More
European futures are trading higher today as we have seen some relief rally taking place in the energy sector. The WTI broke below the $35 level for the first time in a very long time time- precisely 2009. So much for the OPEC decision- which investors were thinking that this was priced in! The reality is this that nothing is priced when it comes to the energy sector and the market digest the news as it comes.Read More
European markets are looking at one element and one element only, which is how the Fed will react to their decision which is due in a two days time frame. All bets are on pause until then and traders are staying on sidelines. This could be the strategy for most of the investors until then. Volume may stay very low as a result of this and even after the event because we will be close enough to holiday period and that itself will have a subdued volume in the market.Read More
European markets showing stains of commodity sell off | BOE rate decision Under focus | Glencore announced debt cut
The sentiment in the European session is painted by the negative tone which was set by Wall Street last night. The general theme is red among the European indices- thanks to the falling oil price. The WTI popped higher yesterday on the back of crude inventory data, but the move was very much short lived and the price continued its path of least resistance. Later today, we will also get the fresh data out of OPEC and traders will be looking very closely at one element, which is who leading in terms of market share and how hostile they are. Iraq without any doubts, has been forceful recently and Saudi Arabia has occupied the top spot as the biggest producer of oil to the Chinese buyers.
Blood Bath in Commodity Space | German Trade Balance Data Missed Forecast | Qatar Pricing Less Than $40 Oil for its Budget
The blood bath endures when we talk about the commodity market and the sad fact is there is more to come as energy prices could continue their path of least resistance. We also have the German is export data this morning and it has just added further dull colour to this picture. Both export and import numbers were disappointing raising concerns that the growth in the euro zone is slowing down.Read More