Daily summary: US stocks rebound after FOMC announcement

• Mixed  moods in Europe
• FED doubles the pace of tapering
• Oil stockpiles in the US fell more than expected

European indices finished today's session in mixed moods, with Germany’s DAX  and France’s CAC both rose 0.2% and 0.5% respectively, while UK’s FTSE fell 0.6%, as investors did not want to make any significant decisions before the Fed meeting. On the data front, the UK's headline inflation rate jumped to a new 10-year high of 5.1% last month, well above analysts’ estimates of 4.7%. 

Major Wall Street indices erased early losses after the Fed doubled the pace of taper to $30 billion a month, putting it on track to conclude it in March 2022 and paved the way for three interest rate hikes by the end of 2022, voicing concerns over persistently high inflation against a backdrop of a steady recovery in the labor market. Earlier data showed US retail sales rose modestly in November as consumer spending slowed on the back of rising prices, while import and export prices continued to increase at solid rates. 

Oil prices rose after today's EIA report showed crude oil stockpiles in the US fell by 4.584 million barrels last week, the third consecutive period of declines and compared with analysts’ projections of a 2.082 million fall.  Elsewhere gold and silver prices fell following the FED decision, however buyers managed to regain control during Powell's press conference. Cryptocurrencies also move higher. Bitcoin is testing $49,000 resistance and Ethereum jumped above the psychological $4000 level.

GOLD fell sharply following the FOMC decision announcement, however sellers failed to uphold momentum and price erased initial losses. Currently bulls are testing major resistance at $1770 which coincides with the upward trendline and 61.8% Fibonacci retracement of the upward wave launched in February 2021. Source: xStation5