In recent years we have become accustomed to the likelihood that the rate of interest rate cuts by the FED, or of keeping the cost of money at very low levels, would be used by the Bulls to give the Wall Street carriage more upward momentum, however at the session. Tuesday was not what dominated sentiment, because despite a recovery in the indices at Jerome Powell’s words about the possibility of further interest rate cuts and the resumption of the central bank’s balance sheet growth, it is certain that optimism lasted for a short time and recovery soon gave way to a new correction that pushed the US market closer to the lows of the day.
As a result of the news, it is not surprising that the financial sector, which last week behaved well, has been the most grounded, falling by -2.02%, as lower interest rates negatively affect the profit margin. But with losses in excess of -1% in the indices, there were other sectors that were far more negative than average, such as health and energy, with safe haven assets having the best record of the session, though not escaping the red. Interestingly, Yen did not keep up with the demand for security, while Gold was an asset of choice at 0.9% to $ 1.506 per ounce.
Photo by Aaron Munoz.
Marco Silva is a Financial Market Specialist with 20 years of experience, with transactions in 12 different countries, involving numerous financial instruments, Specialist in Technical Analysis, Capital Manager, Investment Advisor, Financial Hedging Operations and Algorithm trading developer. Economic Commentator TV and RTP Information for the Financial Markets, Responsible for the Department of Economy / Markets of TVL.
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.