Market Outlook Fed raises rates by 25 basis points

 

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US Markets U.S. stock futures rose overnight after falling on Wednesday following the Federal Reserve's decision to raise rates again.  The Fed increased borrowing costs by a quarter percentage point but signaled that it could soon stop raising rates.   Coinbase lost 7% overnight after the SEC issued a Wells notice saying that the cryptocurrency exchange may have violated U.S. securities law.  Steelcase surged 11% after announcing stronger-than-expected earnings.  The current 10 Year U.S. Treasury yield is set at 3.46680% Dow Jones  32,030.11 -1.63% S&P 500  3,936.97 -1.65% Nasdaq  11,669.96 -1.60% Russell 2000 1,727.36 -2.83% *Stock Market data as of the last closing bell. Data received directly from the reference indexes through ICE Data Services. Do you not understand any of these figures? .

Canadian Markets The minutes from the Bank of Canada's last meeting showed that policymakers were concerned about how to bring inflation back down to the 2% target.  The Bank of Canada kept its key interest rate at 4.5%, citing a positive slowdown in both the economy and inflation. But the minutes showed that policymakers were particularly concerned about the tight labor market and strong wage growth, which is creating additional disposable income.  The Consumer Price Index rose 5.2% in the 12 months to February, down from a 5.9% increase in January. The Bank of Canada will announce its next policy decision on April 12, when it will also release updated forecasts that take into account the fiscal plans of the federal and provincial governments. TSX  19,532.78 -0.62% *Canadian stock prices are as of the last close. Data received directly from the references indexes through ICE Data Services

European Markets European stocks rose slightly on Wednesday as investors awaited the U.S. Federal Reserve monetary policy decision. U.K. inflation reached 10.4% in February, up from 10.1% in January, and above expectations of a 9.9% increase On Thursday, the Bank of England responded to the increase in consumer prices with a 25-basis point interest rate hike.  The Stoxx 600 closed up 0.2% on Wednesday, after experiencing small fluctuations during the day.  Food and beverage stocks rose 1.3% and financial services lost 1.1%.  Euro STOXX 50  4,195.70 0.34% UK (FTSE 100)  7,566.84 0.41% Germany (DAX)  15,216.19 0.14% France (CAC 40) 7,131.12 0.26% *European stock prices are as of 7 am ET. Data received directly from the reference indexes through ICE Data Services.

Asian Markets Markets in Asia fell on Thursday in response to the rate hike by the U.S. Federal Reserve. Banks in Asia also reacted to an announcement from U.S. Treasury Secretary Janet Yellen that the Federal Deposit Insurance Corporation (FDIC) would not increase its insurance limit.  The Hang Seng in Hong Kong gained 2.11% and the Hang Seng Tech index rose 4.41%, mainly thanks to strong gains by Tencent.  JP Morgan forecasts that the Chinese economy will outperform in the coming months, providing opportunities for investors in the APAC region.  But the bank's analysts said that volatility in the banking sector and the Fed's decision to raise rates again mean that APAC investors should be cautious and focus on high-quality fixed income. S&P Asia 50 4,604.63 2.59% Japan (Nikkei 225) 27,319.93 -0.53% South Korea (KOSPI) 2,410.85 -0.25% China (Hang Seng) 19,600.26 0.05% India (SENSEX) 58,214.59 0.24% *Asian stock prices are as of 7 am ET. Data received directly from the reference indexes through ICE Data Services.

Commodities Oil prices gained 2% on Wednesday, hitting a one-week high in response to the Federal Reserve's policy announcement.  Reports that the Fed could soon stop raising rates were well received by oil markets as steady rates could put downward pressure on the U.S. Dollar, and a weaker USD would effectively lower oil prices for many buyers.  Brent and U.S. West Texas Intermediate both gained 1.8% on the day.  According to the Energy Information Administration, U.S. crude stockpiles are at a 22-month high after increasing by 1.1 million barrels last week.  Oil (NYSEARCA:OIL) 26.89 1.09% Gold (NYSEARCA:GLD) 183.44 1.70% Silver (NYSEARCA:SLV) 21.10 2.73% Corn (NYSEARCA:CORN) 24.46 -0.24% Lumber (NASDAQ:WOOD) 69.93 -1.71% *Commodity prices are as of 7 am ET. Data from MarketWatch. To understand why investors track the prices of these commodities, .

Currencies The U.S. Dollar fell on Wednesday after the Federal Reserve raised rates by 25 basis points (bps), down from a 50bps increase a month earlier, while signaling that it could leave borrowing costs steady in the future. The U.S. Dollar Index lost 0.63% on the day.  Analysts are crediting the less aggressive monetary policy to the collapse of SVB and Signature Bank, saying that the Fed may want to relieve pressure on banks holding long treasury bonds.  The British Pound rose in response to higher-than-expected inflation in the U.K. UK(GBP) £0.81 -0.12% Europe (EURO) €0.92 -1.53% Canada (Canadian Dollar) $1.37 0.29% Japan (Yen) ¥130.90 -0.37% *Exchange rates as of 7 am ET. Data from Morningstar Financial Research. To understand why we track these currencies and the differences between them, .

Cryptocurrency Cryptocurrencies fell on Wednesday in response to the rate hike by the Federal Reserve.  Bitcoin was down during U.S. trading hours, sliding toward the $25,000 price point, but reversed course overnight to rise back toward $28,000.  Analysts say that Bitcoin's next movement could indicate its future trajectory. It could either drop below $25,000, after which it could fall back to $18,000; or it could surge above $30,000.  Despite the volatility, Bitcoin has gained more than 20% so far this month.  Bitcoin $27,285.90 -1.93% Ethereum $1,738.00 -3.98% Litecoin $86.87 4.95% Bitcoin Cash $125.24 -4.18% *Exchange rates as of 7 am ET. Data from Morningstar Financial Research. To understand why we track these currencies and the differences between them,.