“This week has seen morning optimism from European markets replaced by broader pessimism once US markets have begun trading. While a more guardedly-positive tone prevails than was the case in the wake of the Fed, this market does not yet look like it wants to rebound.”
Positive start on Wall Street, but some nervousness remains
“The surprisingly-hawkish tone from Jerome Powell certainly sent shockwaves through markets yesterday, as those who had bought following the statement were then blindsided by the rather contradictory atmosphere at the press conference. While some of the post-Fed selloff has been recouped, and markets are attempting to make headway, it is clear that this new hawkish Fed is still providing cause for volatility and sector rotation.”
Apple earnings keep tech stocks in check
“Tonight sees the big one – the arrival of Apple earnings for Q4. Tech stocks are unlikely to recover their poise unless Apple can post some encouraging figures and back it up with a supportive outlook for coming months. Microsoft and Tesla both wobbled on earnings before recovering, so further wild swings should be expected tonight. Overall, equities have stopped going down, which is the first step in a bounce, but as yet the upside appears limited.”
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