U.S. Equity Markets were volatile as investors digested the Federal Reserve’s policy announcement, ending the day lower, led by the Dow which fell 0.77%, as the VIX rose to close 7% higher at a price of 18.15. Markets were “on hold” for much of the day as investors awaited the Federal Reserve’s announcement. Early in the afternoon, Building Permits and Housing Starts for May missed expectations, but remained at historically elevated levels. Then, in the evening, the Fed held interest rates and its asset purchases steady. But the “dot plot” showed that Fed presidents were predicting two rate hikes by 2023 (versus the previous expectation of none). The central bank also said that it sees inflation above 3% this year, before coming back down near 2% next year. This is what sent markets lower immediately after the announcement. In his post-meeting press conference, Fed Chair Jerome Powell said the economy still has a long way to go toward making “substantial progress” on its goals. That indicates that support will remain in place for the time being. This is what helped markets rally somewhat, before selling off again into the close European Markets again closed higher. U.K. Consumer Price Index data for May came in at 2.1%, topping the Bank of England’s 2% target for the first time since 2019. European Central Bank Supervisory Board Chairman Andrea Enria said it hopes to lift the cap on bank dividends soon, but does not expect huge increases. ECB Vice President Luis de Guindos said there is a light at the end of the tunnel for the Euro-Zone economy, adding that the central bank will remove support slowly. In Asia, Japan’s export orders for May grew less than anticipated, but rose versus April, hitting the highest level since 1980, as shipments to the U.S. and Europe continued to surge. Beijing was said to consider releasing commodity stockpiles onto the open market in an attempt to subdue speculation and rein in rising costs. China’s industrial production data for May were weaker than expected, with the rate of growth slowing versus April, possibly signalling near-term demand has peaked. India’s trade deficit for May was slightly weaker than expected, as the rate of export growth slowed versus April, given the more difficult year-over-year comparisons. Elsewhere, Gold fell 1.31% as the Federal Reserve signalled an interest rate hike sooner than expected, while Bitcoin fell 4% on little news.
To mark my 2325th issue of TraderNoble Daily Commentary I am offering a special 2 year rate of Euro 2750 for my Platinum Service which includes 1 to 4 updated emails throughout the trading day To demonstrate this value, a monthly subscription over the same period would cost 4440 euro in total This offer represents a 38% discount and is open to both new and existing members. If anyone is interested in this offer can you please email me on [email protected] for details
For anyone following my Platinum Service it made 145 points yesterday and is now ahead by 1424 points for June having made 1439 points in May, 1244 points in April, having ended March with an impressive gain of 3769 points, 3286 points in February, 2077 points in January, 2273 points in December, 2025 points in November, 2779 points in October, 3042 points in September and 2383 points in August. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1600 points
Your Platinum Subscription intraday updates will appear here once they are published.