Shares Increased, Dollar Declined

Market Reviews

Greenback has declined. DOW lifted 123.07 points (0.57%) to the maximum of 21532.14. 10 year yield closed fell -0.035 to settle at 2.327. NASDAQ grew 67.87 points (1.1%) to close at 6261.17. Yields are lowering and stock indices are rising, suggesting that investors expect Fed to stand pat. Yesterday, Janet Yellen gave her speech, which turned out to be rather disappointment. She didn’t seem so confident about the rate hike, claiming that the move will only depend on the growth and inflation. She affirmed, though, that balance sheet tapering will start soon. Esther George (Kansas City Fed President) mirrored the Chair’s statement.

Bank of Canada executed the expected overnight rate lift of 25 basis points to 0.75%, marking the first increase in seven years. The Bank Rate and the deposit rate were raised to 1% and 0.5%. Members stated that they won’t mind another policy tightening. Loonie has surged due to the BoC’s move. The currency was also supported by a recoil in oil prices. Domestic crude supplies reduced -7.6b barrels. WTI crude oil increased to 46.48. Still, it’s confined under falling 55 day EMA.

BoE’s Ian McCafferty said that the assets purchase program of 435 billion Pounds should be ended. He added that the Bank should raise the interest rates in August meeting. McCafferty forecasts that the inflation will close near 3% and the consumer growth will soften. Emmanuel Macron (French President) claimed that Eurozone economies should correlate more and that there’s a divergence caused by an excessive strength of German economy. On Thursday, French and German ministers should lay out a plan for further interaction between the two economies and also for harmonization of their corporate taxes.

Australian consumer inflation expectation grew 4.4% this month. China trade surplus extended to 249 billion yuan (42.8 billion dollars). British RICS house price balance fell to 7 in prior month. Today, UK will announce Inflation numbers. Germany will publish final Consumer Price Index for the previous month. Swiss will show PPI. Canada will issue new housing price index. The United States will announce PPI and jobless claims.