Market Drivers – US Session – 15-12-2021

Mohamed Abdelhamid 16 December, 2021 4:46 am Commodities, Forex Market, Global Stock Market, Market Update

Wednesday was the Fed’s big day. US stocks rose after Federal Reserve officials approved plans to speed up the withdrawal of the pandemic stimulus efforts, giving investors and traders more insight into the central bank’s response to hot inflation.

All three major indexes turned higher after the afternoon release of a much-awaited Fed statement, published at the end of a two-day policy meeting, and continued to climb as Chairman Jerome Powell spoke at a news conference. Fed officials voted to hold rates near zero Wednesday but most signaled they were ready to lift their short-term benchmark rate at least three times next year.

The U.S. dollar strengthened versus major rivals Wednesday after the Federal Reserve, as expected, moved to accelerate the wind-down of its monthly bond purchases, putting them on track to finish by March. The Fed’s move is also seen clearing the way for rate increases, with policy makers penciling in three …

Economic Data
US crude inventories fell 4.58 million barrels last week. Oil climbed hand in hand with US shares, as traders weighed the Federal Reserve’s shift to tighter monetary policy to battle inflation.

Other Developments
Futures in New York closed up 0.2%, reversing earlier losses of as much as 1.9% on Wednesday. The central bank said it will double the pace at which it is scaling back purchases of Treasuries and mortgage-backed securities, a move that was largely welcomed by investors of risk assets.

Early on Wednesday, China delivered weak economic data on retail sales retreat as sales grew only by 3.9% in November, further highlighting its economic slowdown. But that bad news could signal a reprieve for Chinese stocks as it adds to the case for policy makers to increase stimulus.