Equities quickly bounce back
It didn’t take long for investors to buy the dip, with equity markets back in the green on Thursday following a two day pause which appeared to be nothing more than soft profit taking.
Source – Thomson Reuters Eikon
The rebound even follows a brief dip in US futures overnight, which came very suddenly and appeared to be triggered by very little, but those losses were gradually recouped over the following hours. The US inflation data on Wednesday didn’t do the markets any harm, with the slight dip only adding to the case for rate cuts this year, although it wasn’t quite significant enough to dramatically alter people’s views.
The odds have slightly moved in favour of a third rate hike by the end of the year – although no hike this month – but this has been something of a coin toss for a while with the pendulum swinging back and forth between two and three. Ultimately, the meeting – assuming it takes place – between Trump and Xi later this month will highly influence how aggressive the Fed will be, which is probably largely why the central bank is expected to hold this month.
Economic Calendar
For a look at all of today’s economic events, check out our economic calendar.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Craig Erlam
Latest posts by Craig Erlam (see all)
- Gold Correction Run its Course? - 10/01/2020
- Business Breakfast Podcast (Episode 79) - 10/01/2020
- Downside risks remain for oil and gold - 09/30/2020