March rate hike is feasible as stocks ended lower than usual

stocks ended lower

Geopolitical concerns increase while the U.S. equities decline as the chances of a rigid monetary policy from the Federal Reserve dip in foe investors this Monday.

According to Art Hogan, chief market strategist at Wunderlich Securities, fundamental pictures are still present but at the same time there are some certain events that makes people worried.

The S&P 500 edged down 0.3 percent, with materials and financials as its leading decliners. The Dow Jones industrial average ended about 50 points, with Travellers contributing most declines. The Nasdaq edged down around 0.4 percent.

The Fed monetary policy committee is scheduled to meet between March 14 and 15. Market predicts a rate hike about 86.4 percent in Monday, based on CME Group’s FedWatch tool.

The U.S. economy gained 186,000 jobs last month according to the poll of economists by Reuters. The only possible obstacle for the Fed to raise rates is the February jobs report which is scheduled to release this Friday.

With the North Korea firing ballistic missiles made the investors keep an eye on the geopolitical front in Monday, three of which landed in Japan’s exclusive economic zone, Japanese Prime Minister Shinzo Abe says. The Japanese Nikkei 225 declined 0.46 percent overnight.

Germany’s largest lender said it will raise $8.5 billion to bolster its capital position and has set new financial targets. In Europe, stocks edged down commonly driven by the Deutche Bank lowering bank stocks.

The pan-European Stoxx 600 edged down 0.52 percent, while Deutche’s U.S.-listed shares declined 3.8 percent.

U.S. stocks are on its all-time highs after President Donald Trump’s address regarding the implementation of deregulation and tax reform in the near future.


Leave a Reply

Your email address will not be published.