As was expected on the eve of meetings of three major global central banks, Wall Street sailed aimlessly, with only one final forcing by the Bulls to close the main indexes with slight gains after almost a day in red. At the level of the S&P500 sectors, nothing very relevant except the -1.52% decline in energy and the 1.4% gain in real estate, with the other groups registering changes of less than 1%.
Photo by Andrea Sebastiani.
If the central banks of England and Japan are not expected to change, with eyes focused on the outlook, as far as the FED is concerned the market expects a 0.25% cut in interest rates as well as slightly more dovish rhetoric, thus opening the door to further reductions by the end of the year. If there is a dissonance between what is expected and what will be decided by the board members, increased volatility is expected, with the possibility of a very negative reaction if there is no move.
