Despite a very good afternoon for data the Dow Jones and dollar were reticent to do much this Tuesday, investors holding back ahead of tomorrow’s Fed statement.
The CB consumer confidence reading smashed expectations, coming in at 125.9 against the 121.1 forecast and the 120.6 seen in September (itself revised higher from the initial estimate). The Chicago PMI was also pretty muscular; at 66.2 it hit its best level in around 3 years.
Yet off the back of these numbers the Dow Jones could only rise 0.1%, while the greenback actually fell 0.3% against the pound. That’s likely because investors are a bit nervy ahead of the week’s Fed meeting. While a December hike seems pretty much locked on – with the CME Group’s FedWatch tool pointing to a 98.2% chance of a rate rise in the festive month – the market will still be looking for a firmly hawkish statement from Janet Yellen on Wednesday.
Elsewhere the FTSE saw its daily gains shrink to just 0.1% as the afternoon wore on, leaving the index once again the wrong side of 7500. Sterling, on the other hand, stretched its legs against the euro, doubling its growth to 0.4%, while cable climbed back above $1.325, as investors continue to focus on Thursday’s BoE rate vote.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved. In relation to fixed odds, Spreadex Ltd is licensed and regulated by the Gambling Commission under licence number.