US stocks subdued during early trade

Haresh Menghani FXStreet

Major US equity indices witnessed a rather lackluster opening on Thursday as investors digested yesterday's hawkish FOMC announcement.

The Fed signaled it could raise interest rates for the third time this year, despite low inflation, and disclosed a plan to start shrinking its massive $4.5 trillion balance sheet.

On the economic data front, weekly jobless claims fell sharply during the week ended September 15, while the Philly Fed manufacturing index rose to a three-month high but did little to help the markets to keep pushing higher, especially after the recent rally to fresh record highs.

During the opening hour of trade, the Dow Jones Industrial Average was down around 15-points to 22,397, while the broader S&P 500 Index lost 4-points to 2,504. Meanwhile, tech-heavy Nasdaq Composite underperformed the broader indices and fell over 20-points to 6,435.

Thursday's key focus would be on the US President Donald Trump's important announcement on effort to resolve North Korea problem. Bloomberg reports that Trump will unveil new sanctions and a fresh provocation could seriously dent investors' appetite for riskier assets - like equities.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD holds lower ground near 1.1850 ahead of EU/ US data

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1850 in European trading on Friday. A broadly cautious market environment paired with modest US Dollar demand undermines the pair ahead of the Eurozone GDP second estimate and the critical US CPI data.

GBP/USD keeps losses around 1.3600, awaits US CPI for fresh impetus

GBP/USD holds moderate losses at around 1.3600 in the European session on Friday, though it lacks bearish conviction. The US Dollar remains supported amid softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold trims intraday gains to $5,000 as US inflation data loom

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains heading into the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.