Markets

Breakdown of the latest developments on the global exchanges
Feb 19, 2019, 12:00 PM GMT
#Indices

Trump's Wall Effect is Still Being Felt Across Different Sectors

Following the Presidents' holiday, investors are preparing for the detailed report of the last FED meeting, which is set to be released tomorrow. The main point of interest would be the prospect for future tightening of the monetary policy, by the central bank, and its effect on the government bond's market rally, which can be determined from the report.

Sonal Desai, chief investment officer for fixed income at Franklin Templeton Investments, said in a Bloomberg TV interview, that the FED is considering the economic growth, as well as the rising volatility in the equity markets, as a prime reason why the continuation of the rally in bonds won't hold.

The 6-month US Bond Yield rose with 0.52% to 2.514 in anticipation of the report tomorrow, yet special considerations would be given to any potential indication that the rally might indeed be at an end.

Meanwhile, the S&P 500 rose with 1.09% to 29870 with little movement on the Dow Jones, which is currently staying at 25843, finding resistance at the same level that was last seen prior to the US federal government shutdown. Depending on the significance of the FOMC minutes tomorrow, the industrial average might see a short-term correlation below 25000.