Stock markets sell off post FOMC

Exclusive Capital Research Team

Exclusive Capital Research Team

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Market Brief, Thursday, 17th of September, 2020

The major US stock markets sold-off in the US session as the FOMC left FFR unchanged at 0.00% to 0.25% and sees rates unchanged at least through 2023. The Nasdaq is currently trading around 11,1146 while the S&P is at 3,360.

The Asian session was subdued following the selloff in their US counterparts with the ASX down by 1.1% and the Nikkei by 0.7%. In China, the Hang Seng and Shanghai Composite were down by 1.9 and 1% respectively following the drain of liquidity by the PBoC liquidity.

The Bank of Japan kept monetary policy changes unchanged with rates held at -0.1% and QQe with Yield Curve Control. The BoJ revised higher the Japanese economy outlook. Some initial strength was seen in the Yen complex with USDJPY currently trading around 105.

The dollar index saw strength post-FOMC as the greenback surged through the 93 levels. Its major counterparts saw weakness as the EURUSD traded though 1.18 to the downside and is currently trading around 1.1765. The GBPUSD saw some initial support at the 1.29 level and is currently trading around 1.2927

WTI and Brent traded marginally lower after its recent surge. WTI slipped below 40$ per barrel and is currently trading around 39.60 while Brent saw resistance at 42$ per barrel and is currently trading 41.75 as there is talk of OPEC not discussing further cuts.

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