Day: September 16, 2020

Fed signals rates will stay near zero for at least three years
Stock News

Fed signals rates will stay near zero for at least three years

By Catarina Saraiva The Federal Reserve left interest rates near zero and signaled it would hold them there through at least 2023 to help the US economy recover from the coronavirus pandemic. The Federal Open Market Committee “expects to maintain an accommodative stance of monetary policy” until it achieves inflation averaging 2% over time and longer-term inflation expectations remain well anchored at 2%, the central bank said in a statement Wednesday following a two-day policy meeting. The statement reflects the central bank’s new long-term policy framework in which officials will allow inflation to overshoot their 2% target after periods of under-performance. That shift was announced by Powell last month at the central bank’s annual Jackson Hole policy conference. The vote, in the F...
Daily Market Outlook, September 16, 2020 
Forex News

Daily Market Outlook, September 16, 2020 

Asian equity market is mixed this morning with Chinese indices down but most other markets higher. US President Trump has said that a Covid-19 vaccine may be weeks away. The WTO has ruled that some US tariffs on imports from China broke its trade rules. Meanwhile, TikTok is reported to be set to become a standalone US company in order to satisfy White House concerns. Just released data for UK inflation showed a big but less-than-expected drop in annual CPI inflation in August. The annual rate fell to 0.2% down from 1% in July primarily due to the impacts of the temporary reduction in VAT in the hospitality sector and the ‘eat out to help out’ scheme. Inflation is likely to pick up modestly in subsequent months as the impact of these initiatives start to fall out but it may stay below the ...
New US Treasury sanctions on Russian hackers hit Monero address
Crypto News

New US Treasury sanctions on Russian hackers hit Monero address

Per Sept. 16 additions to the list of sanctioned individuals, the U.S. Treasury is targeting Monero addresses. Russian nationals Dmitriy Karasavidi and Danil Potekhin have become the newest names on the specially designated nationals (SDN) list. According to the Treasury’s announcement on the subject, the two engineered an elaborate phishing campaign targeting U.S. citizens in 2017 and 2018. Both parties had a number of cryptocurrency addresses including Bitcoin and Ether, as well as ZCash and Litecoin. Surprisingly, Karasavidi’s information includes a Monero address: 5be5543ff73456ab9f2d207887e2af87322c651ea1a873c5b25b7ffae456c320. Though the Treasury has been updating its crypto capabilities, including targeting the crypto wallets of several Russian nationals allegedly involved in e...
Dow jumps 200 points ahead of Fed announcement, Goldman up 2%
Business news

Dow jumps 200 points ahead of Fed announcement, Goldman up 2%

The Dow Jones Industrial Average and S&P 500 were both higher on Wednesday as traders awaited the Federal Reserve's latest decision on monetary policy. The 30-stock Dow rose 204 points, or 0.8%. The S&P 500 climbed 0.5%. The Nasdaq Composite rose just 0.1% as shares of Facebook, Amazon, Apple, Netflix, Alphabet and Microsoft were all under pressure. Both the Dow and S&P 500 jumped to their session highs after White House chief of staff Mark Meadows said he was optimistic about a coronavirus stimulus deal. President Donald Trump also signaled in a tweet he would back a bigger package. Republicans and Democrats have struggled to reach a deal on further stimulus, dwindling hopes of an agreement being struck before the U.S. presidential election in November. "The Fed can do w...
Trading Idea on Gold: Will the Fed Fuel Further Rally?
Forex News

Trading Idea on Gold: Will the Fed Fuel Further Rally?

European stocks remain in consolidation mode since the end of last week, which is not the case for the US equity markets, where the “buy-the-dip” army of market players are propelling a rebound. However, there are some signs that the bounce is a technical reboot rather than resumption of the medium-term rally. For example, comparing returns of SPX and its European peer DAX over the past six months we can clearly see divergence driven by the US equity: Since the end of July, SPX growth started to accelerate without any clear fundamental indications for this, which had a tinge of irrationality. But now the Europe remains calm, so it makes sense to at least exercise caution about the current rebound in US equities. But there are strong hopes that the market will be able to extend gains if...
Fed to weigh near zero rates through 2023: Decision day guide
Stock News

Fed to weigh near zero rates through 2023: Decision day guide

By Steve Matthews and Emily Barrett Federal Reserve officials, who recently unveiled a more relaxed strategy on inflation, have an opportunity Wednesday to back up the plan with details as they look to accelerate the US economic recovery. The Federal Open Market Committee is all but certain to keep its benchmark overnight rate in a target range of 0% to 0.25%, where it’s been since March 15 to help soften the Covid-19 pandemic’s blow. The committee, in its final scheduled meeting before the US election on Nov. 3, will release a statement and economic forecasts at 2 p.m. Washington time. Chair Jerome Powell will hold a press briefing 30 minutes later. Officials are expected to project rates staying near zero though 2023, reinforcing the message delivered by Powell in late August that they...
Top Scottish law officer hands resignation to PM Johnson: BBC
Commodities

Top Scottish law officer hands resignation to PM Johnson: BBC

LONDON, Sept 16 (Reuters) - Scotland's top law adviser to the British government, Richard Keen, has offered his resignation to Prime Minister Boris Johnson over his plan to break international law by breaching parts of the Brexit divorce treaty, the BBC reported on Wednesday. "@BBCScotlandNews understands Lord Keen, the advocate general, has found it increasingly difficult to reconcile govt plans to change EU exit deal with the law," BBC reporter Glenn Campbell said on Twitter. He added that the resignation had yet to be accepted. Keen has served as advocate general, a political appointment, since 2015. Other senior members of Johnson's Conservative Party have also expressed opposition to the draft legislation unveiled last week, which the government acknowledges would violate internat...
China’s blockchain partner Cypherium gets its own Twitter emoji
Crypto News

China’s blockchain partner Cypherium gets its own Twitter emoji

Cypherium, a blockchain company involved in China's Blockchain Service Network initiative, has just launched its own branded Twitter emoji. The New York-based blockchain firm announced the news in a Sept. 15 tweet, adding that the new emoji comes in anticipation of Cypherium’s upcoming public token sale on Sept. 16. With the new feature, all #Cypherium and #CPH tags on Twitter posts automatically get a Cypherium logo, similar to Bitcoin logos when tweeting “#Bitcoin” or “#BTC.” Cypherium’s new Twitter emoji comes in conjunction with the upcoming token sale. As previously announced, the firm is planning to sell a total of 300 million CPH tokens in two rounds. In the first round, Cypherium plans to sell 200 million tokens at a price of $0.25 per CPH. The remaining 10...
Tickmill’s Investing Diva, EURJPY Daily Outlook 16-09-20
Forex News

Tickmill’s Investing Diva, EURJPY Daily Outlook 16-09-20

EURJPY Daily Outlook 16-09-20 – On Tuesday China extended tariff exemptions on 16 US products for another year at the request of Chinese importers. We found out that the U.S. manufacturing production increased in August. Welcome to the Tickmill update, I’m Kiana Danial the founder of the Invest Diva movement. Make sure to subscribe to the Tickmill YouTube channel and support us by liking and sharing this video with your forex trading friends. New York Manufacturing Index jumps more than expected in September. Canadian Manufacturing sales increased for the third consecutive month but the UK jobless rate rise sounded warning for bigger job losses ahead and New Zealand Consumer confidence hit the lowest level since 2008. On Wednesday we’ll be eyeing inflation numbers from the UK and Cana...
Blackstone warns of a ‘lost decade’ where stock market returns are ‘anemic’
Business news

Blackstone warns of a ‘lost decade’ where stock market returns are ‘anemic’

SINGAPORE — The coming years could be a "lost decade" for equity returns as companies struggle to grow their earnings, Blackstone's Executive Vice Chairman, Tony James, told CNBC on Wednesday. James, who's attending the virtual Singapore Summit, told CNBC's "Squawk Box Asia" that stock prices may not rise further after becoming fully valued over a "five- to 10-year horizon." "I think this could be a lost decade in terms of equity appreciation," he said, referring to a term commonly used to describe a period in the 1990s when Japan experienced economic stagnation. He explained that current low interest rates may not dip further and may instead rise to more normal levels in the coming years. Higher interest rates, in many instances, tend to negatively affect corporate earnings and stoc...