RECORDS AT WORLD STOCKS, OIL UP
Records highs were achieved at world stocks, the dollar fall down after the Fed made understand that interest rate raising is possible. Oil prices whilst rose. The dollar was 0.3 percent down in the major currency basket.
The minutes, while leaving the door open for another rate hike weren’t as hawkish as some investors had been expecting – there had been speculation ahead of time that hawkish tones could be quite supportive for the dollar,” said Alexandra Russell-Oliver, currency analyst at Caxton FX in London.
The yen, though, fell 0.2 percent. The Canadian dollar hit its strongest position at C$1.3389 per U.S. dollar.
European shares started high, but easily went down.
“OPEC officials prefer … to wait and see the impact of an extension in helping rebalance the market prior to taking any more drastic actions,” James Woods, analyst at Rivkin Securities, said.
Though the Fed reported that policymakers agreed that the rates should not be raised, most still sure that a hike is coming. Fed staff proposed a plan to wind down the more than $4 trillion of debt securities amassed as part of efforts to stimulate the economy.
CME Group’s FedWatch tool showed that 83 percent traders see a chance of a rate rise in June and a 46 percent consider the probability of two increases by the end of 2017.
The BOJ (Bank of Japan) and the ECB (European Central Bank) are the ones with the long-standing structural weaknesses and there are bigger fears about the risk of a taper tantrum
said Chris Scicluna, head of economic research at Daiwa Capital Markets.