Markets cautious ahead of Fed statement

An investor plays a mobile chess game while watching stock prices at a brokerage in Beijing China Tuesday

USA stock indexes finished modestly higher Monday, extending the market's solid gains from a rally last week.

Bets that the Federal Reserve will this week reinforce the market view that the USA tightening cycle is in the rear-view mirror have kept alive the bid on stocks, while the dollar index touched its lowest since March 1.

"I think market consensus centres around an end in September but we expect the Fed to end its balance sheet rolloff in June, at around $3.85 trillion yen, based on our calculations on the amount of excess reserves the Fed will need", said Shuji Shirota, head of macroeconomic strategy at HSBC Securities in Tokyo.

"U.S. stocks are nearing record highs once again as investors price in a cautious scenario for policy, considering the macroeconomic environment hasn't changed much since the Fed paused in January", wrote John Lynch, chief investment strategist for LPL Financial in a note.

In particular, investors will be focussing on whether policymakers have sufficiently lowered their interest rate forecasts to more closely align their "dot plot", a diagram showing individual policymakers' rate views for the next three years.

The CitiFX U.S. economic surprise index, which measures economic data against expectations, has been negative for over a month, and earlier in March, touched its lowest since August 2017. The Dow Jones Industrial Average rose 65.23 points, or 0.3 percent, to 25,914.10.

The Australian dollar slipped a quarter of a percent to $0.7070 on a decline in 10-year bond yields and after Bloomberg reported that some USA officials expressed concern that China is pushing back against US demands in trade talks.

Earlier on Tuesday, data showed new orders for USA -made goods rose less than expected in January and shipments fell for a fourth straight month.

In Asia, Japan's benchmark Nikkei 225 lost almost 0.1 percent to 21,566.85.

An investor plays a mobile chess game while watching stock prices at a brokerage in Beijing China Tuesday
An investor plays a mobile chess game while watching stock prices at a brokerage in Beijing China Tuesday

In currency markets, sterling touched $1.3311 after slipping as low as $1.3241 as traders expected European Union officials to give Britain a delay on Brexit negotiations, though the uncertainty kept the market volatile.

"The last thing we need to see now is an increase in tensions that suggest there is a heightened probability that the USA are going to put their tariffs on that $200 billion trench at 25 percent", he added.

The dollar index against a basket of six major currencies eased 0.1 per cent to 96.450, hovering close to a two-week low.

The Japanese yen inched up 0.1 per cent to 111.28 yen to the dollar, while the euro was nearly flat at $1.1347.

Oil prices drifted just below 2019 highs on Tuesday, supported by continuing supply cuts led by producer club OPEC. USA sanctions against oil producers Iran and Venezuela are also boosting prices, although traders said the market may be capped by rising U.S. output.

US West Texas Intermediate (WTI) futures stood flat at US$59.02 per barrel after touching their highest since November at US$59.57 on Tuesday.

Precious metal palladium, used in things like vehicle catalytic convertors, topped the $1,600 an ounce mark for the first time as news that Russian Federation is planning to ban exports of precious metals scrap fuelled concerns over an already supply-constrained market. Prices have almost doubled since their mid-August lows and have surged more than 25 percent this year.

Spot gold added 0.3 percent to $1,306.77 an ounce.

Copper rose 0.76 percent to $6,474.00 a tonne. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by 1.2 basis points to 2.614 percent. This article is strictly for informational purposes only. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

More news: New Zealand gun control threat sparks run on semi-automatic weapons

Related News:

  • [INFOGRAPHIC] Understanding load shedding so you aren't left in the dark

    [INFOGRAPHIC] Understanding load shedding so you aren't left in the dark

    Eskom's Andrew Etzinger said on Monday it could take up to a week to address the myriad problems plaguing the power system. The power utility's fleet is ageing and some of the power stations are 50 years old and the average is 37 years old.
    First 'Lucy in the Sky' Trailer Starring Natalie Portman as an Astronaut

    First 'Lucy in the Sky' Trailer Starring Natalie Portman as an Astronaut

    Deeply affected by what she's seen, when she touches down she starts to lose touch with reality in a world that seems too small. Hamm follows up, " you got to see the vast celestial everything, and it blew your mind , so now nothing makes sense".
    SEC calls Musk's first amendment tweet defense 'ridiculous'

    SEC calls Musk's first amendment tweet defense 'ridiculous'

    Hueston of Newport Beach, California, asked the court for permission to file another response to the SEC, this one by Friday. When Musk last debuted a vehicle for the mass market - the Model 3 sedan - Tesla took $1,000 reservations from consumers.
  • Giggs reponds to Zlatan criticism

    Giggs reponds to Zlatan criticism

    Zlatan Ibrahimovic has named the two players around whom Manchester United must build their future. In the beginning, I saw him more as an individual - now, he is playing more for the collective.
    Utrecht tram killer 'should have been in jail'

    Utrecht tram killer 'should have been in jail'

    Throughout the day, well-wishers placed flowers at the foot of a tree next to the intersection where the shooting happened. Police issued a photo of a bearded Tanis aboard a tram in a blue hooded top. "His role is under further investigation".
    New Pointers Advise Towards Each day Low-Dose Aspirin for Most Individuals

    New Pointers Advise Towards Each day Low-Dose Aspirin for Most Individuals

    She emphasized, though, that people who have had heart attacks or have stents should continue with the medication. These guidelines apply to people who have not been previously diagnosed with heart disease.
  • Ronaldo rests as Juventus absorb 1st Serie A loss

    Ronaldo rests as Juventus absorb 1st Serie A loss

    Juventus paid the price for resting Cristiano Ronaldo as their invincible start to the season suffered a shocking end at Genoa . Napoli , meanwhile, rallied after letting a two-goal lead slip just before Ospina's frightening collapse.
    Can Boeing weather the 737 Max storm?

    Can Boeing weather the 737 Max storm?

    Boeing plans to release upgraded software for its 737 MAX in a week to 10 days, sources familiar with the matter said on Friday. That same system is under intense scrutiny as authorities continue to investigate another crash involving the 737 Max .
    US military considers keeping 1000 soldiers in Syria

    US military considers keeping 1000 soldiers in Syria

    On Feb. 21, the White House announced that the United States would leave about 200 troops in Syria after the planned pullout. According to the latest reports the force would be stationed across Syria with some troops working alongside Kurdish forces.
  • Lewis Hamilton makes promise to Mercedes fans after Australian Grand Prix

    Lewis Hamilton makes promise to Mercedes fans after Australian Grand Prix

    Before the start of Sunday's race, drivers and F1 staff lined up behind a sign that said "Thank You Charlie". Sure, he's only one Grand Prix into the season, he concedes, but it was a big one.
    Consuming Too Many Eggs Will increase Coronary heart Assault Danger, Examine Says

    Consuming Too Many Eggs Will increase Coronary heart Assault Danger, Examine Says

    Eggs were then looked at specifically because they are one of the richest sources of dietary cholesterol. Each participant was asked a long list of what they'd eaten for the previous year or month.
    Megan McKenna breaks silence on ex Mike Thalassitis' tragic death

    Megan McKenna breaks silence on ex Mike Thalassitis' tragic death

    The 26-year-old had dated The Only Way Is Essex star McKenna for around seven months before they split in August last year. They said they were in the process of informing the man's next of kin and that a file would be prepared for the coroner.


Most liked

4000 people watched Facebook video before anyone reported it
"Including the views during the live broadcast, the video was viewed about 4000 times in total before being removed from Facebook ", Sonderby said .

Turkey's Erdogan to West: we will send you back in coffins
The New Zealand Embassy in Ankara also said Peters had raised the issue with a Turkish delegation in New Zealand. Fifty people were killed in attacks on two mosques in the southern city on Friday.

Soda, sports drinks tied to higher risk of early death
There was also a modest link between sugary drinks and cancer rates among both men and women. Even worse, that increase was more pronounced for women.

Lilly Singh lands late-night talk show on NBC
If you didn't know, Singh joined the video platform in 2010 and has since amassed more than 14 million subscribers (wow). Her appointment is a historic feat as it makes her the first woman to lead a late-night show on a broadcast network.

No threat to India-Pakistan WC clash, says ICC CEO
Pakistan hosted Zimbabwe for five limited-over matches in 2015, which was followed by the PSL final, three Twenty20 internationals against a World XI and a single Twenty20 worldwide all in Lahore in 2017.

Kristoff St. John's cause of death revealed
Other contributing factors included "myocardial bridging of left anterior descending coronary artery and the effects of ethanol". The Los Angeles County Coroner confirmed to Page Six on Tuesday that the actor died of hypertrophic heart disease.

The Halo Insider Program is now open for PC players
Cross-play with console is probably the biggest thing players want. [We] want players to have a choice there. In addition, Halo Insiders will be considered for early access play sessions with in-development Halo games.

Singapore, Hong Kong, and Paris Tied as the World's Most Expensive Cities
The annual index compares the cost of goods and services, including food, transport and rent in 133 cities around the world. Meanwhile, cities like Seoul and Copenhagen is at the same level with NY and shared the same seventh place.

CNN issues an ominous warning about the Mueller report
The poll found that almost 62 percent felt that public release of the report was very important while more than 20 percent felt it was somewhat important.

Ariana Grande Tour Has a Surprise: Voter Registration
Miller passed away on September 7 of an accidental drug overdose due to "mixed drug toxicity" of fentanyl, alcohol, and cocaine. Not only can fans see the pop star perform songs from her two new albums during the tour, but they can also register to vote.

Report confirms derpy Pixel 3a and Pixel 3a XL names
That's according to a new report from 9to5Google, which confirms a previous week-old report from the same publication. The Pixel 3a battery is expected to be just 3,000mAh and be charged with 18W fast charging through it's USB-C port.

Trump Explains Why He's Still Criticizing McCain
Meghan McCain says President Donald Trump's life is "pathetic" after his weekend Twitter attack against her father, the late Sen. Trump asserted that McCain had told the White House hours before his no vote that he would support the president.

Bucks, down by 20 at half, rally to beat Heat by 15
The Milwaukee Bucks rallied from a 23 point deficit and beat the Miami Heat 113-98 on Friday night in South Florida. Khris Middleton also fired 21 points and Eric Bledsoe scored 17 for the NBA-best Bucks hiked their record to 52-17.

Portsmouth winger Ronan Curtis named in Mick McCarthy’s Republic of Ireland squad
The Republic of Ireland's games against Gibralar (away) and Georgia (home) take place on March 23 and 26 respectively. I've been impressed with him. "I'd sooner have a fellow who might put the ball in the net".

Consumption of Sugary Drinks Linked To Increased Risk Of Cardiovascular Diseases
It's also possible that results for these study participants might not represent what would happen for other USA adults. Vasanti Malik, research scientist in the department of nutrition in the Harvard T.H.