Fed keeps rates on hold despite positive economic conditions
Perhaps reflecting the unpredictable political and economic environment that has emerged since Inauguration Day, the Fed Reserve has kept rates on hold despite providing a raft of reasons why recent data would support a rate rise.
These included a continued strengthening in the labor market, expansion in economic activity, increased job gains, low unemployment, moderate rises in household spending and improved consumer and business sentiment.
Having previously flagged up to 4 rate rises in 2017, the Fed will now have to wait until March to reassess the situation.
In the wake of this news the Dow flatlined to finish at 19,890 points while the NASDAQ posted a gain of 0.5% to close at 5642 points after strong performances from Apple Inc and Facebook.
The FTSE 100 was relatively unmoved, with all the money flowing into the betting shops as punters wagered heavily on the prospect of President Trump being impeached, not making it through the first year or not going full-term, along with a wide range of other scenarios. Not visiting the UK has been the big shortner.
While markets in mainland Europe rallied with the DAX and the Paris CAC 40 both up approximately 1%. One of the big news stories in Germany was a lift in earnings guidance by Siemens, resulting in its shares rallying approximately 5%.
On the commodities front, oil rallied 1.4% while gold was relatively flat. Iron ore was also unmoved, hovering in the vicinity of US$83 per tonne.
Base metals were mixed with zinc once again inching up to the US$1.30 per pound mark, while copper retraced slightly after spiking to US$2.71 per pound in the previous session.
Nickel was the best performing base metal, rallying more than 3% to finish at US$4.62 per pound.
Lead was down approximately 1.5%, but remains above US$1.05 per pound.
The Australian dollar was fetching US$0.758 as US markets drew to a close.
It should be noted that broker projections and price targets are only estimates and may not be met. Also, historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
When the experts at Next Investors have a stock pick, it may pay to listen.
The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.
They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.
Click the link below to see what they are currently investing in.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.