EN
Overnight on Wall Street: Thursday 18 March 2021
18 March 2021Equity markets
US Equity pushed higher overnight with the S&P500 and Dow Jones indexes both closing at record highs. Investors were cheered by the Federal Reserve’s dovish stance on interest rates and optimistic views on the US economic recovery.
-         Dow Jones up 189 (0.58%)
-         NASDAQ up 54 (0.40%)
-         S&P 500 up 11 (0.29%)
-         Russell 2000 up 17 (0.73%)
Source: Yahoo Finance
FOMC policy meeting
Overnight we had the US Federal reserve release its economic projections and policy on interest rates going forward. While giving an optimistic outlook on the state of the US economy Fed Chairman Powell recommitted to continuing asset purchases at the current rate and keeping their easy money interest rate policy in place until the Fed’s inflation targets are met. Most Fed officials expect to hold short-term interest rates close to zero through 2023.
With the Fed providing clarity around the central bank’s updated approach to inflation and interest rates, equity markets roared higher while the US dollar and bond yields dipped.
FX markets 
US Dollar
On Fed Chairman Powell’s comments, the US Dollar index dipped sharply with the spectre of rising rates squashed for now. All major currencies rallied strongly against the US dollar as the FX and Bond markets adjusted their near term rate expectations.
Source: GO MT4
Commodities
Gold
Gold was another beneficiary of the Fed’s commitment to easy money policies, rallying over 1.2% on US dollar weakness and the Fed’s commitment to reaching its increased inflation targets.
Gold has now been up 7 of the last 8 sessions as it continues its bounce off the 1680 support area.
Source: GO MT4
| Friday, 19 March 2021  Indicative Index Dividends Dividends are in Points |
||||||
| ASX200 | WS30 | US500 | US2000 | NDX100 | CAC40 | STOXX50 |
| 0 | 0 | 0.417 | 0.046 | 1.552 | 0 | 0 |
| ESP35 | ITA40 | FTSE100 | DAX30 | HK50 | JP225 | INDIA50 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Disclaimer: Articles are from Stock Extreme Trade analysts and contributors and are based on their independent analysis or personal experiences. Views, opinions or trading styles expressed are their own, and should not be taken as either representative of or shared by Stock Extreme Trade. Advice, if any, is of a ‘general’ nature and not based on your personal objectives, financial situation or needs. Consider how appropriate the advice, if any, is to your objectives, financial situation and needs, before acting on the advice. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.
Next Article
Rising yields have markets seesawing, US dollar rising
Equity markets US markets dropped sharply overnight as inflation fears returned on the back of Treasury yields hitting their highest levels in more than a year. Investors are concerned the Federal Reserve will allow inflation to accelerate, after Wednesday’s policy meeting where they reaffirmed their commitment to easy money policies. As...
Previous Article
Up next: Bank of England rate decision
With Bank of Canada and the Fed interest rate announcements wrapped up, it’s time for Bank of England to announce their decision whether to in...