Equity markets rose in a volatile trading session as the twin old issues persisted in traders’ minds. Stocks pared most gains when Auntie Yellen was about to present her session at a House Budget and Oversight Hearing.
This time, she provides a silver lining that is much needed. She enforced the idea that the federal government stands ready to do more if needed decisively to ensure all Americans’ deposits are safe.
Still, we are seeing pressure on the banking counters. The SPDR S&P Regional Banking ETF tumbled 2.8%, while the SPDR S&P Bank ETF fell 2.5%. It seems that more work is needed to stop the contagion fear.
Uncle Powell’s FOMC conference statement is well received
As market participants digested his prepared speech on Wednesday, the omission of “ongoing increases” is seen as a dovish stance, and the dollar responded quickly to drop aggressively.
Indeed, the Fed now has till May for the next FOMC meeting, and within this period, further CPI, PPI and Job data, if shown weakness, will tame the appetite for more rate hikes ahead, although the forecast is for another hike of 25 basis points.
What’s on the menu today?
At 8.30 pm, we will have the Core Durable Goods Order, which should see a smaller monthly growth of 0.2% compared to 0.8% in the prior period.
The contrary hawkish to his name, Fed Bullard will speak at 9.30 pm. This could be another market mover, and hopefully, he opens with a more dovish note.
The S&P Global Composite PMI for March is expected to decrease to 47.5 from 50.1.
It is 24 March, Friday, 8.45 am in Singapore and 8.45 pm in New York. It has been a challenging trading period as I work to balance my portfolio and recoup the heavy losses. Let’s hope for a splendid final trading day of the week.
From your lovely trading buddy.
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All is well.