News

Dow falls on interest rate fears

30/01/2018

The Dow Jones Industrial Average (#Dow30) fell 177 points yesterday -its largest single-day decline in 5 months - on profit-taking ahead the Federal Reserve monetary policy decision and concerns that interest rates will be raised. This is all just knee-jerk stuff of course. The market doesn’t really set much store by such minor changes, but old habits die hard, and a bit of profit-lockdown is never a bad idea. Most US corporate earnings have been pretty impressive, with 77% of companies reporting earnings that exceeded estimates. A minor (and overdue) interest rate rise won’t have any serious impact on their ability to continue flourishing, so this should not be construed as a trend reversal.  Non-Farm Payroll data will be released Friday, and if we have learned anything it’s that the market gets terribly excited about this, usually for no reason at all. It’ll go up, it’ll go down (not necessarily in that order) and next week it’ll be right back where it started.

Share this news

Related posts

Forex News yen.jpg

Dollar Yen breaks lower

24/05/2019

Dollar Yen breaks lower

Read more
Forex News EU Flags 1.jpg

Decision time looms for Sterling

23/05/2019

Decision time looms for Sterling

Read more
Crypto bitcoin-two-1-e1501525477229.jpg

Bitcoin fails to convince

22/05/2019

Bitcoin fails to convince

Read more
Economic brexit.jpg

New Brexit Deal to be announced at 15:00

21/05/2019

New Brexit Deal to be announced at 15:00

Read more