Yesterday, the focus was on the G7 meeting, as well as the reduction of the US Federal Reserve's (Fed) leading interest rate by 50 basis points. The G7 meeting ended up having a relatively mixed interpretation in the financial markets since despite having announced that it would be willing to adopt expansionary measures, it had not however had any concrete measures. Shortly thereafter, however, it was possible to see the Fed lowering its interest rate and that this decision had a mixed impact on the stock markets as it also ended up sending out an "alarm" message.
In particular, the European benchmark index - Stoxx 600 - appreciated by 1.37%. The American index of Dow Jones fell by 2.94%, while the technological Nasdaq lost 2.99% and the S&P 500 depreciated by 2.81%.
With regards to European debt interest, a drop in yields in the major countries was observed. Also, the yield on 10-year US government bonds fell to less than 1% for the first time.
The European currency appreciated by 0.32% and that was also driven by the Fed's interest rate decline.
With regards to crude oil, it appreciated by 1.13%, having also had a mixed day. Once again, the mixed interpretation from the fall in US interest rates led to an equally mixed behavior in the price of the barrel.
The price of yellow metal rose sharply yesterday. The 3.01% appreciation is largely due to the drop in the Fed's leading interest rate.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2020 TeleTrade-DJ International Consulting Ltd
TeleTrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. TeleTrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
TeleTrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.