“The recovery from the lows of Monday and Tuesday continued today, even as investors focused on what the Fed might say this evening. Geopolitical tensions have resulted in a trimming of gains, but overall a wave of buying has swept over markets today.”
Stock prices climb as countdown to FOMC begins
“The latest Fed decision is only hours away, but the allure of buying the dip remains too strong for many to resist. Equities have picked themselves up off the lows of the week, with price action around Microsoft providing a template for this week, where initial weakness is replaced with buying. The recent pullback has driven stocks back down towards more attractive valuations, and so long as they can avoid any nasty surprises most earnings may well prompt investors to buy back in.”
Bank of Canada foreshadows Fed
“The Bank of Canada surprised markets by keeping rates unchanged, but provides a guide for what might come this evening, with its warning of rate hikes later in the year. The bank thinks inflation will peak later in the year, something that the Fed still likely suspects to be the case. So much hawkishness appears to have been priced in from Jerome Powell that he might find it hard to live up to expectations.”
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