Futures fall before the Fed’s briefing
On the American stock exchanges again there has been a bearish trend. Futures are falling in anticipation of the speech of the head of the Federal Reserve System (Fed) Jerome Powell. The next trading session may open in the red. Investors have reasons for concern, so the fall in quotations may continue. In addition to Powell’s briefing, reports of several large companies are also expected, which may also collapse the market.
Futures fall before Powell’s performance and company reporting
Tuesday is the start of a briefing by Fed Chairman Jerome Powell. He will present in the Senate a report on the monetary policy of the organization, which was conducted in the last 6 months. This should be the main event of the trading week, which will determine further investor sentiment.
In March, there was a steady increase in futures, associated with positive news regarding negotiations with China. Representatives of the United States announced the achievement of important agreements, which increased optimism. In addition, Donald Trump announced that the introduction of duties on trade with China once again postponed. All these factors have led to the US stock market showing steady growth.
Bullish trend contributed to the statements of Donald Trump regarding the new series of talks with the head of China Xi Jinping. The US President noted that he expects a lot from these meetings. Trump hopes that the negotiations will go well and in the next week or two we can expect “big news”.
However, the short-term effect has passed, and another important question has arisen for investors. It is necessary to find out which line in the monetary policy will be chosen by the main financial body of the United States. On the eve of the performances, the exchange trading practically ceased, investors took a waiting position. Because of this, the cost of futures began to fall.
On the stock exchanges, Powell is expected to announce conservative monetary policy measures. Analysts hope the Fed will not raise the key rate. In addition, from the report, it is necessary to understand another important point. Over the past 6 months, the US federal reserve has declined. Investors expect Jerome Powell to clarify the situation and tell you how to compensate for the loss.
In addition, other important events are expected. In particular, several large companies must submit reports. Including experts waiting for reports from the trading giant Macy’s, telecommunications company Discovery, as well as mobile operator Frontier Communications.
As for the last trading session, in its course, a serious appreciation of the shares of several companies was recorded. In particular, General Electric securities added 6.4% immediately. This happened thanks to the announcement of a $ 21.4 billion deal between the American giant and the company Danaher. In addition, Berkshire Hathaway has also risen in price. In particular, Class A shares added 0.5% in value, while Class B securities added 0.2%. The growth was marked against the background of the investment letter publication by the head of the company, Warren Buffet. Thanks to successful negotiations between the United States and China, investors began to buy shares in technology giants. In particular, growth was demonstrated by Cisco System (1.4%), Intel (1.2%), Apple (0.7%).
