Worldwide stock markets surged during Tuesday’s trade, while the Dollar exchange rate remains steady, as traders moved their concentration to the Federal Reserve’s potential interest rate increase this week and expected movement in the U.S. growth and inflation outlook.
Dow Jones industrial average and the S&P 500 touched new record levels U.S. trading. The profits enlarged the post U.S.-election surge that has been motivated mainly by expectations of improved U.S. economic development under the new President.
Yet doubt over the Federal Reserves sluggish or reckless pace of interest rate increases after its gathering retained the dollar currency rate stable compared to a basket of other currencies. The U.S. Dollar index, which tracks U.S. Dollar against major currencies, was standing around 100.970.
The Fed on Wednesday is broadly anticipated to increase rates surprisingly since last December and just the second since the 2007-2009 budgetary emergency, however speculators will look at the national bank’s announcement and monetary estimates for any indications of how it supposes Trump’s decision influences the viewpoint for development and expansion.
“Understandably, the market is in a little bit of a holding pattern” ahead of the Fed’s policy statement, said Richard Franulovich, a senior currency strategist at Westpac Banking Corp in New York.
In European markets, stock exchanges experienced support on the back of gains in banks stocks following Italy’s largest lender unveiled a 13 billion-euro share issue. MSCI’s all-country world stock index was up 0.7 percent, the pan-European STOXX 600 share index gained 1.1 percent.
On the other hand, crude oil prices remained unchanged in the latest trading session, thanks to reports of higher supplies from OPEC members. In addition, the potential threat of rising U.S production is also weighing on crude oil prices.