Afternoon Market Update – 23/02/2017 – by Jazz Singh
February 23, 2017The global stock rally has fizzled out in the early hours of this session as we price in the Fed’s rate hiking schedule. Minutes from the latest meeting shows a confidence from the FOMC’s point of view that inflation shall remain manageable in the medium term. Looking ahead, we also require some forward guidance regarding the highly anticipated US tax reform plans. We should gain some insight to this when Treasury Secretary Mnuchin’s appears on CNBC today. The major European bourses are down this session between 0.1 and 0.3 percent. US equity futures are flat so far as we expect some traction once the Mnuchin interview begins. Looking to the major currencies, the dollar index is slightly positive for the session after yesterday’s decline of 0.2 percent. The euro seems reluctant to break its range from the past 2 days as the French election risk continues to cloud prospects, while the yen extends its rally in this period of uncertainty. Crude oil is well bid this session, gaining over 1.5 percent as we eye a break through the upside on the $50-55 range on WTI. As well as the Mnuchin interview we also have a speech from the Fed’s Lockhart this afternoon as well initial jobless claims from the US.
