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Wall street delighted speech fed:
(Washington) The New York Stock Exchange welcomed the speech of Fed Jerome Powell on Friday. Nevertheless, which left the door open to future rate drops to support US employment, while the dollar and the obligations fell. For example,
Posted at 10 a.m. Updated at 11:25 a.m.
“The initial reaction of the action market to the speech of the president of the Fed […] has been extremely positive. Similarly, ”summarize the analysts of Briefing.com.
While they were already playing in the green at the opening. For example, the star clues of the American square gained wall street delighted speech fed speed following the declarations of the boss of the Federal Reserve.
Around 11:10 am (East time), the Dow Jones took 1.85 %, after reaching a record in session at 45,668.02 points.
The NASDAQ index increased by 2.03 % and the widen S&P 500 index by 1.58 %.
A “rapid” degradation of the American labor market is not to be excluded. could “justify” a relaxation of monetary policy, and therefore interest rates, warned Jerome Powell from the meetings of Jackson Hole, in Wyoming between central bankers.
He added that the Fed is in a “delicate situation”. because the new customs duties set up by the American executive begin at the same time to affect the prices paid by consumers at the risk of reviving inflation.
These remarks dropped treasury bills: on the US bond market. the two -year yield – the most sensitive to monetary developments – increased from 3.78 % to 3.68 % around 11:10 am (Eastern time).
The one at 10 was also frankly relaxed, 4.33 % Thursday at the end of 4.25 %.
The dollar also fell, dropping 1 % against the single currency, at 1.1730 dollars for one euro, lower rates being likely to lead the course of a currency.
“The macroeconomic prospects should convince the Fed to lower its rates at the September 17 meeting”, in a range of 4.00 % to 4.25 %, “observes Jeffrey Roach, from LPL Financial.
A majority of market players anticipate this scenario, according to the CME Fedwatch watch tool.
“On the other hand. in the longer term, the structural changes in the economy [américaine] have created an uncertainty as to the rate of drop in interest rates, “said Roach.
The Toronto Stock Exchange progressed at the end of the morning
The main Canadian stock market index earned more than 300 points at the end of the morning on Friday, supported by the vigor of the technology and basic metals sectors.
The S&P/TSX compound index of the Toronto prosecutor’s office increased from 337.34 points to 28,392.77 points.
On the currency market, the Canadian dollar was exchanged at 72.28 cents US, up compared to its average course of 71.96 cents US on Thursday.
On the New York wall street delighted speech fed Raw Material Stock Exchange, the price of crude oil, for delivery in October, increased by 17 US to US $ 63.69 per barrel.
The price of gold, for delivery in December, earned US $ 40.70 at US $ 3,422.30 per Once.
Canadian press
Wall street delighted speech fed
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