MARKET ANALYSIS 06/04/2017

Today’s highlights: FOMC minutes caused a downfall, VXX investors are delighted
·         FOMC minutes weigh down on leading indices: The 3 biggest US indices were enjoying a great rally until the FOMC minutes were released and cooled down the fun. The DJ30 and SPX500 had the biggest 1-day reversal in 14 months. The major news piece from the FOMC meeting was the call from Fed officials to start unwinding the central bank’s $4.5 trillion balance sheet as early as 2017.

 

·         OH SNAP! The newly IPO’d Snap stock plummets 6.3% over a controversial lawsuit from a former employee, Anthony Pompliano, which is making headlines again. As of yesterday, Snap Inc. is not looking to take this lawsuit to court, but to settle it in arbitration, where the details will not go on public record.

 

·         Searching for a healthy future: Alphabet, Google’s parent company, is headhunting for top talent in the health and science sectors. Alphabet is looking for computational biologists, robotics experts and top academic researchers.

 

·         Use the Fear! The effects from the FOMC minutes and Trump-Xi summit have sent many investors looking the hedge their portfolio by adding the ETF VXX – AKA “The Fear Index”. The result – a 3.13% spike during yesterday’s trading, almost unprecedented for an ETF.

 

·         Another possible volatility event to hit the markets on Friday is the publication of the NFP minutes. NFP stands for Non-Farm Payroll and it indicates the change in the number of employed US citizens during the previous month, not including the farming industry. In addition, USD price may also be affected by the Unemployment Claims report, published today at 12:30 GMT.

 

·         Markets in Europe might also be affected by a speech delivered by ECB President Mario Draghi earlier today.

 

Join eToro And Trade With Confidence :- http://etoro.tw/2kw2LLo 

 

Leave a Reply