Yesterday, US markets closed in negative territory, after the FED, as expected, raised its interest rates by 0.25%. The main negative impact on the market came from prospects of further rate hikes in 2017.
After Fed meeting in September, analysts predicted only two rate hikes during 2017. At the same time, the Fed in a statement states that the rate hike is possible only when they deem the economy is strong enough to sustain such a step, which significantly added an element of uncertainty for the market.
All major sectors of the market ended the day lower, at the same time, the so-called pritective sectors declined faster. Energy stocks also fell, tracking the decline in crude oil prices. (SP 500 -0,81%, Dow -0,60%, Nasdaq Composite -0.50% on)
Asian stocks outside Japan fell after the US Federal Reserve raised interest rates for the first time this year.
The sharp decline of the yen against the US dollar, allowed Japan's stock market to remain in positive territory, while other stock markets in the Asia-Pacific region closed in the red.
Japanese automakers were among the companies that have managed to get the most benefit from the yen decline this month. Toyota shares rose 2%, Honda at 1,8%, Nissan 1.3%. In Australia unemployment rate , 5.7% in November, at the forecast of 5.6%. (Nikkei Stock Average + 0,10%, S P ASX 200 -0,82%, Shanghai Composite -0,73%)
Today, most European stock indices traded in positive territory amid further weakening of the European currency. The increase in US interest rates had a positive impact on European importers.
Mining sectors lost as the dollar prices of metals fell sharply. Gold fell more than 2%, trading at the beginning of February 2016, while silver lost more than 3%.
The Italian banking sector is gaining, after the appointment of a new prime minister. There is expectation that the stable political environment well help banks to raise funds for recapitalization.
These economic statistics, published today in Europe, in general, have positive and able to support the stock market.
In the FOREX currency market US dollar gains continue. Due to this factor, it seems that the European currency is moving towards parity with USD. USD / JPY pair reached the level of January 2016, the levels of 118-118.30. Brent oil market expectedly declined in the area of $ 54 based on a strong dollar. Today we expect a large bunch of US data.