US markets ended the session mildly lower after soaring 178 pts for Dow Jones intraday. The better-than-expected GDP growth in Q1 sparked a strong start to the trading day and The Fed's rate cut made the markets rally. However, the comments from The Fed, stating that the economic is still weak and inflation rate is still uncertain made investors nervous towards the end of the trading session. It seems that The Fed is ready to pause on cutting rate and they said that the past few rate cuts will promote moderate growth over time. Better-than-expected earnings season have helped the markets to rebound from its lowest points this month as the Dow climbed 4.54%, S&P500 rose 4.75% and Nasdaq jumped 5.9%. Overnight, the Dow fell 11.81 pts or 0.09% to 12820.13, S&P500 fell 5.35 pts or 0.38% to 1385.59 and Nasdaq fell 13.30 pts or 0.55% to 2412.80.
Asian markets may open rather flat with some upward bias after The Fed's cut overnight as expected. However, the statement that came afterwards made investors unclear about what The Fed's going to be doing next. In one hand, the economic condition still remains weak and that there's still room for more rate cuts in the near term but on the other hand, GDP number came in better than expected and there's inflationary problem to be considered by The Fed. Crude oil was recently traded around $114.70ish per barrel, gold traded around $873ish and JPY traded at 103.90ish. Nikkei futures closed at CME at 13930 compared to the close of 13740 here yesterday.
South Korea's Kospi and Hong Kong's Hangseng markets are closed for labour day holiday today and will resume trading tomorrow.
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