Joshua Mahony MSTA
Scope Markets
Yet another batch of strong earnings figures has provided the US markets with another boost today, with the hesitancy over this afternoon’s FOMC meeting largely out the window.
- US markets hit new highs after strong earnings figures
- With no conference, markets look set to scour FOMC statement
US markets are ripping higher this afternoon, with the second quarter earnings season proving to be a major boon for the equities market. The deterioration in the US dollar coupled with low expectations in the face of slowing economic indicators has provided an environment for stocks to flourish, with Hilton, Coca Cola, DR Horton, and Ford all topping estimates on the street. The creation of new all-time highs is once more becoming the norm, with the Dow, Nasdaq and S&P500 all hitting new records in early trade.
This afternoon sees investors focus on the latest appearance from Yellen and co, at what promises to be a relatively uneventful meeting by historical standards. With the Fed Funds rate showing a 0% chance of a rate rise, and little chance of a balance sheet reduction being announced today, it is the linguistics which really matter. With no press conference from Yellen to contend with, markets will be keeping a close eye out for any mention within the accompanying statement of a potential September balance sheet reduction, alongside any reference to recent inflation dissapointment.
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