S&P 500 reached 3000 after Fed comments
On Wednesday the U.S Stocks touched record tops following the statement from Jerome Powell the Federal Reserve Chair. Powell remarks reinforced the possibility for a more relaxed monetary policy in the United States. Dow Jones Industrial Average and Nasdaq Composite touched all-time highs while the popular the S&P 500 shortly went over 3,000 for the first time as well. In the statement to the House Financial Services Committee, the Federal Reserve Chair said that business investments over the United States have decreased “notably” lately while the economic outlook seems more unclear now.
Brexit uncertainty makes GBP less attractive
Investors seem too afraid for a new round of investments on the British pound due to the fact that uncertainty over the Brexit still sparks fears of the U.K. dropping out of the European Union with no deal.
On Wednesday morning the GBP dropped to a fresh 6-month low versus the euro, with the dovish turn in BOE pressing the popular currency as well.
GBP dropped to $1.2475 versus the greenback on Wednesday, having broken under the important $1.25 level.
Oil up almost 5%
On Wednesday Oil increased almost 5% a barrel following U.S. crude inventories contracted more than anticipated. The increase came while important producers abandoned rigs in the Gulf of Mexico before a storm. The president of Lipow Oil Associates Andrew Lipow said that “Oil prices are supported not only by the greater than expected draw in the EIA crude oil inventories but with the evacuation of several platforms in the Gulf of Mexico in advance of a tropical storm, that will curb production.” U.S. West Texas Intermediate crude futures rose $2.60, to $60.42 a barrel while Brent crude futures increased $2.88, to $67.04 a barrel.
U.S Dollar suffers after FED comments
On Wednesday the greenback fell following the Federal Reserve Chairman’s remarks that hit the market with a negative tone in a congressional statement by stating that trade risks and anxieties regarding the global forecast continue to exercise pressure on the U.S. economy.
In the planned notes to a congressional committee, the Federal Reserve Chairman stated that the Fed is willing to “act as appropriate” to provide a decade-long increase.
The greenback crashed to session lows against yen and the euro following Powell’s comments. That bolstered expectations that the Fed will decrease the interest rates for the first time in 10 years, at its following monetary policy gathering later this month.