Global stock drools in a wobbling session, crude oil jumps


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Global stock drools in a wobbling session, crude oil jumps

On Wednesday, the 20th of March 2019, a stockpile of global stocks faltered across the world, as a boost from downbeat US Federal Reserve had not been sufficient to offset concerns of economic growth and tentative trade talks between US and China.

Initial reaction to latest FOMC minute, which made further dovish stance saying that it would not be hiking interest rate anytime soon, was pushing the market towards a more risk-prone approach. Following the Fed announcement of US economic health, Wall St.

rallied out of negative territory and global stocks rose initially. Never the less, later after absorbing the Fed data, that had remarked a much weaker-than-anticipated US economy, alongside increased worries on the recent round of trade talks between US and China, global stocks were dragged into the red at the end of the session.

MSCI’s gauge of global stocks, which keeps track of stock exchanges of 47 countries, shed 0.42 percent, its first intra-day loss since March 8th, while the pan-European STOXX 600 index had shredded off 0.90 percent of its earlier gain, closer to a six-month high reached yesterday (March 19th).

The Emerging market stocks had also lost over 0.20 percent. At the closing bell, all three indexes of Wal St. had been lower while Dow, S&P 500 and Nasdaq dropped 0.55, 0.29 and 0.07 percent respectively, while the American dollar index lost 0.39 percent.

Addressing to a pressurized dollar against a basket of global currencies, an associate portfolio manager at Manulife Asset Management in Boston, Chuck Tomes said, “The dollar has come under pressure against a large number of currencies around the world.

Overall it seems the Fed was able to solidify their dovish view as there are no rate hikes priced in for this year and only one rate hike for 2020”.