Federal Reserve’s conference this week is expected by the Global stock markets and wall street futures to know about the interest rate plans. While the major financial centers of the works including London, Tokyo, Paris, and Shanghai showed oil price decline yet earned positive gains.
Wall Street’s recognized S&P 500 index gained a high after 5 days. Notably. The tech stocks hiked and brought freshness to the stock market.
Awaiting the summer conference of the Federal Reserve
Participants in the stock market are waiting to know the interest hike indications at the Federal Reserve’s summer conference. Clifford Bennet, the market analyst pointed out that Jerome Powell, the chairperson might provide a hint about future interest rates and stressed the uncertainty of the stock market condition.
Stock market number changes
The FTSE 100 in London increased 0.2% in early trade to reach 7,274.01. The DAX in Frankfurt increased by 0.9% to 15,749.52, and the CAC 40 in Paris increased by 0.9% to 7,265.01. The S&P 500 future was up 0.3% on Wall Street. That increased by 0.2% for the Dow Jones Industrial Average.
Despite the fact that the bulk of the firms in the index declined on Monday, Big Tech stocks helped the S&P 500 gain 0.7%. Microsoft gained 1.7% while Nvidia increased 8.5%. Tesla increased 7.3% to make up part of the 11% loss from the previous week. Palo Alto Networks, a provider of security software, saw the largest increase in the S&P 500, rising 14.8%.
The Nasdaq composite increased 1.6% while the Dow declined by 0.1%. In Asia, the Nikkei 225 in Tokyo increased by 0.9% to 31,856.71 and the Shanghai Composite Index increased by 0.9% to 3,120.22. Hong Kong’s Hang Seng increased 0.9% to 17,791.01.
The S&P-ASX 200 in Sydney increased by 0.1% to 7,121.60, while the Kospi in Seoul increased by 0.3% to 2,515.74. The Sensex in India increased by less than 0.1% to 65,254.06. Markets in Southeast Asia and New Zealand expanded.
Trader’s hope and Fed’s hint
Despite the fact that consumer inflation increased in July from the previous month’s 3% to 3.2%, traders are hopeful that the Fed will determine that upward pressure on prices is abating. That is less than the peak of 9% from last year, but it is still above the Fed’s aim of 2%.
According to economists, the Fed’s toughest task may be to squeeze out the last bit of inflation. Because the Fed has previously announced policy changes during the Jackson Hole meeting, it is carefully observed.
In the minutes from its July meeting, the Fed stated that it will base future decisions on statistics related to hiring, inflation, and other factors. Next week, the government is expected to announce both the monthly jobs data and an update on inflation.
Situation of energy and currency markets
The benchmark US crude showed a marginal decline and lost 29 cents. Now, trading at $79.83 per barrel on the New York Mercantile Exchange. While the basis for international oil trading, BentCrude declined by 34 cents and settled at $84.12 per barrel in London.
On the other hand, the dollar in the currency market reduced from 146.11 yen in Monday to 145.61 yen, while the euro displayed a slight decrease from $1.0899 to $1.0917
As the conference of the Federal Reserve is nearing, the global stock market is ready for potential turns, triggered by the sentiments of interest rates and the happening inflation management challenges.