Stocks Showed No Positive Reaction To Fed Minutes
Fed released its January meeting protocol, which indicated that members improved their outlook for growth, labor market and inflation, as expected. The possibility of a March rate hike has been reinforced as well. Overall, members assume there will be 3 rate lifts this year. But, investors are convinced there will be 4 or even 5 of them, which puts market under the pressure. The release didn’t provide stocks with any sort of boost. The recovery from a period of prolonged volatility has slowed down. Particularly, DOW reduced -0.67% to 2479.78.
Across the pond, Q4 growth numbers were revised lower to 0.4% qoq and 1.4% yoy, on which Sterling responded with a decline. Bank of England has finally taken a chance to increase rates and pledged to continue doing so moderately. Still, considering the transition period in Brexit, the Pound will remain weak most of the time.