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economy
Wednesday, November 28, 2018
Federal Reserve Chairman Powell announces on Wall Street the best day of his three weeks. The Fed's head noted US interest rates just below neutral levels. At the beginning of October, he had seen the Fed's monetary policy far removed from this neutral point.
Concerns about US monetary tightening and the hope of a settlement of the trade dispute between China and China fueled Wall Street on Wednesday. US Federal Reserve Chairman Jerome Powell had already said in New York that his policy of gradual rate increases was aimed at balancing the dangers.
The current range of interest rates from 2.0 to 2.25% is "just below" the estimated neutral level, with which the economy is neither encouraged nor slowed down. This suggests that there may not be as much interest rate hikes as investors expect, said economist Jack Ablin of Cresset Wealth Advisors. According to other badysts, Powell said a month and a half ago that the Fed was away from neutral interest rates: "It's a dramatic turnaround," said Walter Todd of Greenwood Capital . With Powell's statements, the dollar has been under heavy pressure. The euro jumped from about a US cent to last at 1.1370 dollar.
The Dow Jones Index of Standards closed at 2.5% at 25,366 points. The broad S & P 500 rose 2.3% to 2,743. The Nasdaq stock market index rose from just under three percent to 7,291 positions.
Before Powell's remarks, the Dow was slightly above one percent. This was corroborated by statements by US Treasury Secretary Donald Trump that his meeting with Chinese President Xi Jinping on Saturday in Buenos Aires was seen as an opportunity to "turn things around" in the trade dispute with China. . Councilor Larry Kudlow had added that until now, Trump was disappointed with China's reaction. Nevertheless, the focus has been on the optimistic aspect of the stock market statement.
Any indication of a solution to the dispute could spur global growth, said Kim Forrest, fund manager, Fort Pitt Capital Group. In terms of individual stocks, Tiffany was under pressure. The jeweler has been affected by the reluctance of Chinese customers to buy. Shares fell 12.1% after outperforming quarterly. Tiffany's outlook was less optimistic than expected.
However, thanks to a buzzing cloud activity, the Salesforce software publisher has exceeded badysts' expectations. Newspapers increased by 10.1%. In addition, Microsoft shares rose sharply – by 3.8%.
Source: n-tv.de
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