CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Stocks jump as Powell reaffirms dovish stance

13:06 10 July 2019

Summary:

  • Equities receive boost from Fed chair

  • Powell strongly hints at imminent rate cuts

  • S&P500 back at 2995; turns green on the day

 

There was a high level of expectation ahead of Jerome Powell’s appearance on Capitol Hill this afternoon, but the event itself may contain little by the way of surprises after a pre-released text of the Fed chair’s opening remarks has caused a significant market reaction. With markets already discounting a 100% chance of a Fed rate cut at the end of this month, the bar was pretty high for Powell, but he has seemingly repeated the trick from the June FED decision in meeting it and in doing so sent stocks soaring once more.

US stocks have jumped on the news with the S&P500 rallying almost 20 points since and closing back in on the 3000 handle. Source: xStation 

 

Selected comments from the pre-released text are as follows:

  • Uncertainties since June FOMC continued to dim outlook

  • Uncertainties and concerns about the global economy continue to weigh on US economic outlook 

  • Fed will act as appropriate to sustain US economic growth 

  • There is a risk weak inflation will be even more persistent than Fed currently anticipates

The reaction to this can be seen across several markets with the US dollar falling lower across the board while US bonds and Gold have spiked along with equities. The US 10-year bond (TNOTE) has moved above the 127 handle and could be looking to make a comparable move to the one seen last month after the Fed decision. Source: xStation  

The S&P500 remains in breakout territory above 2963 and if the market can move above recent highs of 3004 then further gains could lie ahead. Source: xStation 

 

 

This content has been created by X-Trade Brokers Dom Maklerski S.A. This service is provided by X-Trade Brokers Dom Maklerski S.A. (X-Trade Brokers Brokerage House joint-stock company), with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. X-Trade Brokers Dom Maklerski S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back