icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Market Buzz: Fed minutes feed sentiment

Market Buzz: Fed minutes feed sentiment
Stocks are expected to fall for a second consecutive day ahead of US Federal Reserve notes due Wednesday, when they could announce their plan to slow down their $85 billion-per-month stimulus bond buying program.

“The key event influencing the markets is tomorrow’s [Wednesday] Federal Open Market Committee minutes. It will set 90 percent of the dynamic for the market,” Ariel Cherny, an analyst at Moscow’s Allianz Investment office, told Bloomberg.

A majority of economists believe the Fed will begin to dismantle the program in September, which would hit emerging stocks hard especially, as the bond-buying-program has been a push in emerging markets.

Russia stocks are headed for a second day of drops, as crude oil trade hit a two-month low on Tuesday.  

The MICEX slipped over 1 percent midday, but recovered by market close, and is trading up 0.13 percent at 1,379.11. Sberbank, Gazprom, and Lukoil, all heavyweight equities, dropped in the day session but are expected to open high. The dollar-based RTS will open 0.40 percent at 1317.77.

WTI saw its biggest decline in two months on Tuesday, and is trading at $104.81 per barrel, and Brent is down 0.36 percent at $109.75 a barrel, still high on Egypt unrest.

Futures of the both oil blends dropped after the American Petroleum Institute reported inventories dropped by 1.2 million barrels last week.

Asian stocks have dropped in anticipation of a Fed scale-back. Hong Kong’s Seng Index dropped 1.1 percent, and is trading down 0.96 percent, and China’s Shanghai Composite dipped before climbing 0.1 percent.

Japan’s Nikkei Index is recovering after an early trading session dip, and is up 0.17 percent.

European indices are red across the board as investors carefully inspect the Fed’s next move. Amsterdam’s EURO STOXX dropped 1.25 percent, London’s 100 Index fell 0.19 percent, France’s CAC lost 1.35 percent, and Gemany’s Dax is down 0.79 percent.

US equities are mixed ahead of Fed minutes. The Dow Jones closed down 0.05 percent, the S&P 500 climbed 0.38 percent, and the NASDAQ increased 0.68 percent.

Dear readers and commenters,

We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system.

Sorry for the inconvenience, and looking forward to your future comments,

RT Team.