Federal Reserve two-day policy meeting starts today

Dmitry Lukashov IFC Markets

Dow joins SP 500 and the Nasdaq in correction territory

US stock market retreat continued on Monday ahead of Federal Reserve two-day policy meeting starting today. The S&P 500 lost 2.1% to 2545.94. Dow Jones industrial fell 2.1% to 23592.98. The Nasdaq composite index dropped 2.3% to 6753.73. The dollar turned lower as the Empire State index for December indicated manufacturing activity grew at a sharply slower pace in the New York region compared with November: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, fell 0.3% to 97.12 and is lower currently. Futures on stock indexes point to higher openings today.

DAX 30 falls less than other European indexes

European stocks retreat accelerated on Monday led by retailer stocks after disappointing earnings reports. Both heEUR/USD and GBP/USD turned higher with Pound currently rising while the single currency lower against the dollar. The Stoxx Europe 600 index lost 1.1%. The DAX 30 fell 0.9% to 10772.20. France’s CAC 40 slumped 1.1% and UK’s FTSE 100 slid 1.1% to 6773.24.

NIKKEI worst performer among Asian indices

Asian stock indices gave back previous session gains today as global growth slowing concerns overshadowed expectations of more stimulus by Chinese government. Nikkei fell 1.8% to 21115.45 with yen‘s climb against the dollar continuing. Chinese shares are falling: the Shanghai Composite Index is down 0.6% and Hong Kong’s Hang Seng Index is 1.1% lower. Australia’s All Ordinaries Index fell 1.1% with Australian dollar climbing against the greenback.

Brent down on US output rise forecast

Brent futures prices are edging lower today on signs of building global supply glut. Prices fell yesterday after US Energy Information Administration forecast a rise of 134,000 barrels a day in US shale oil production for January to 8.166 million barrels a day in its monthly Drilling Productivity report. February Brent crude fell 1.1% to $59.61 a barrel on Monday.

Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.

Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

EUR/USD off highs, back to 1.1850

EUR/USD loses some upside momentum, returning to the 1.1850 region amid humble losses. The pair’s slight decline comes against the backdrop of a marginal advance in the US Dollar as investors continue to assess the latest US CPI readings.

GBP/USD advances to daily tops around 1.3650

GBP/USD now manages to pick up extra pace, clinching daily highs around 1.3650 and leaving behind three consecutive daily pullbacks on Friday. Cable’s improved sentiment comes on the back of the inconclusive price action of the Greenback, while recent hawkish comments from the BoE’s Pill also collaborates with the uptick.

Gold surpasses $5,000/oz, daily highs

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The yellow metal’s upside is also propped up by the lack of clear direction around the US Dollar post-US CPI release.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.