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European markets continue to mark positive days

Author:
Valentin Lazarov
Market News

Stocks fell on Wednesday after the top-ranking Federal Reserve official hinted that lower rates may not be in the cards.

The Dow Jones Industrial Average closed down 162.77 points at 26,430.14, while the S&P 500 pulled back 0.8% to 2,923.73 after hitting an all-time high. The Nasdaq Composite declined 0.6% to 8,049.64. The S&P 500 also posted its worst day since March 22.

Fed Chairman Jerome Powell said in a news conference that recently low inflationary pressures may only be “transitory,” dashing speculation the central bank was at least entertaining the idea of a rate cut because of tame inflation.

Oil prices fell on Wednesday after U.S. crude inventories in the United States soared more than expected to their highest since September 2017 as production hit a record high.

The declines were somewhat tempered by the intensifying crisis in Venezuela and Washington’s stopping Iranian oil sanction waivers as of May 1, with the fall in the global Brent benchmark more muted.

Crude futures bounced slightly along with the stock market after the Federal Reserve left interest rates unchanged, citing a lack of inflation pressure, but struggled to hold gains.

Gold prices edged up on Wednesday after Federal Reserve officials voted to hold interest rates steady at the benchmark rate in a target between 2.25% and 2.5%.

Spot gold was up 0.25% to $1,286.59 per ounce, after hitting a session low of $1,277.38. U.S. gold futures were up 0.19% to $1,288.10 an ounce.

President Donald Trump earlier this week urged the Fed to cut the rate by 1%, citing the lack of inflation as a primary reason for a rate cut.

ADP’s national employment data for April showed 275,000 new private-sector job additions, higher than the consensus estimate of 180,000 additions.

Stocks around the world rose on Wednesday, extending the global rally into a fifth month as Apple Inc’s stellar results and forecast allayed concerns about slowing growth in corporate profits.

Source:CNBC

 

 

International Financial Markets Department

Euro-Finance Ltd.

forex@eurofinance.bg

www.eurofinance.bg 

*This material should not be considered as a recommendation for buying/selling securities.