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U.S. stocks mixed as Federal Reserve officials' remarks are taken into focus

Author: Bennet Global
by Bennet Global
Posted: Jul 13, 2019

Stocks saw a rather mixed session on Tuesday seeing turbulence as investors took into account recent remarks by the Federal Reserve and are considering whether or not the Fed would unwind plans to shift policy in a more dovish direction.

With the recent comments made by the Fed, we saw the S&P500 rise 0.13% at close of market, which after a session mostly trading in the red was good news. The Dow saw a third straight trading session fall ending trading down 0.08% which were led by declines of 3M which saw losses of over 2%. The NASDAQ saw gains in the session rising 0.54% closing up 43.35 points.

Stocks on their own saw struggles in Tuesdays trading, seemingly unable to turn higher as markets continued to prospect the possible changes in prices that the Fed Committee decision may show, if they do move ahead shifting the monetary policy to a less accommodative direction in the midst of strong economic data. On Tuesday afternoon, markets priced in a 3.8% probability on a 50 basis point rate cut, after the Feds July meeting, this paired with a 96.2% chance of a less aggressive 25 base point ease.

Jerome Powell, the chair for the Fed made comments at the Federal Reserve Bank of Boston on Tuesday morning, in what is set to be his last public appearance before he issues his bi annual monetary policy report to congress on Wednesday and Thursday. In his comments which were more focused on the topic of bank stress testing, Powell made comments that the assessment procedure will have to be evolved over the next few years, so they can keep in line with the constantly changing financial system. This will enable the Fed to test that banks will be able to continue to run as normal in the case of sever economic downturn.

Treasuries saw losses across the curve on Tuesday before the start of Powell’s meeting coming on Wednesday. The yield on the ten year note, which moves inversely to the price, rose over 2.5 basis points to a respectable 2.063%. Depending on how the Fed tackles the next few days, and what comes from the reports, may show even more volatility in the markets.

Serving international investors since 2001, Bennet Global has been offering global trade execution and portfolio management services to a very diverse client base. We combine our vast knowledge of the markets with a highly experienced team of investment specialists who are dedicated to bringing the best service to our clients. We have pioneered the practise of providing exceptional results with an affordable commission structure. Today we have become one of the leading Asian stockbroking firms with our research and analysis at the heart of everything we do. We are a full service brokerage house based in Hong-Kong, that creates tailor made portfolios for each individual. We assist companies and institutional investors satisfy their portfolio management needs. Because our focus is purely on the clients as individuals, we know our service is second to none. You know exactly what you want, and we help you achieve that.

Bennet Global was founded in 2001 to provide an efficient way of trading and utilizing our research with our clients.Our goal is to offer exceptional trade execution services while providing access to the most current and relevant information.Today we are one of the top personal and institutional brokerages in the Asia Pacific region. With the competition of other up and coming brokerages keeping us at the top of our game, we do not loose focus when delivering our exceptional service to each client.

Sally Dawes – Bennet International

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Bennet Global has been offering global trade execution and portfolio management services to a very diverse client base.

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Author: Bennet Global

Bennet Global

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Member since: Jul 10, 2019
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