-
Fed delivers 25 bp rate hike
-
Dot-plot shows at least 6 more rate hikes this year
-
Fed's QT may begin in May
-
Disappointing US retail sales for February
-
Oil pulls back, gold trades flat
-
JPY the weakest, AUD the strongest among major currencies
European stock markets booked solid gains today with German DAX jumping 3.7%. Part of this move was fueled by a Financial Times report that claimed Russia and Ukraine are drawing up a peace agreement that will end the war. Content of the report was later rejected by Ukrainian authorities, who said that it only presented the Russian position. However, these comments came after the close of the European cash session and indices did not have a chance to react to them.
After Ukraine denied any significant progress was made in talks with Russia, US indices moved lower. Nevertheless, it was the FOMC decision that was a key event for Wall Street today. The US central bank delivered an expected 25 bp rate hike and signaled that a decision to begin QT may be made at the coming meeting in May. Moreover, the updated dot-plot showed that median expectation among FOMC members is for at least 6 more hikes in 2022. Economic forecasts pointed to a slower real GDP growth on the back of higher inflation.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appApart from the FOMC decision, there was one more important macro event today - release of US retail sales data for February. Report showed a weaker-than-expected retail sales growth. However, data for January was revised higher. Nevertheless, market did not experience any major reaction to this data.
When it comes to commodity markets, today was another day of oil sell-off. Drop was magnified by the aforementioned Financial Times report but has regained some ground after that report was denied by Ukraine. Gold pulled back on hawkish Fed decisions and forecasts but has regained ground during Powell's press conference.
Gold experienced some wild swings in the aftermath of FOMC decision and during Powell's presser. Precious metal currently trades flat on the day after defending $1,910 support zone. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
