With a Fed meeting looming, the US open did little to change up what has been a muted and tentative day of trading.
Rising around 40 points, the Dow Jones managed to recross 26500 after the bell, having tumbled below that key level on Tuesday (remember last Friday it at one point was trading above 26750). The dollar, meanwhile, managed to take 0.1% off the pound and 0.3% off the euro, while sitting effectively unchanged against the Japanese yen.
How the dollar and Dow fair in the second half of the week is likely going to be down to what Jerome Powell and co. do on Wednesday evening. At this point a rate hike – the 3rd of 2018 and the 8th since the end of 2015 – is pretty much guaranteed. What is less certain is what the Fed does going forward. The central bank has spoken this year of wanting to raise rates 4 times, meaning one more would be on the cards, likely in December; it is what happens beyond that investors will be really interested in.
Elsewhere the FTSE just about managed to hold above 7500, despite BP (LON:BP) and Shell (LON:RDSa) giving back 0.6% and 1.1% respectively as Brent Crude itself tumbled back under $81.50 per barrel. The DAX, meanwhile, slipped 0.2%, but with the CAC once again hitting 5500 as it rose half a percent.
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.