Dow ends higher after Fed’s hawkish tilt
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A more hawkish US Federal Reserve (Fed) last night where on-going progress is expected to continue, and the much-cited “may soon be justified” regarding the cut signaled a November announcement in play with an end to the program. ‘asset purchase in mid-2022, which puts it in line with previous expectations of a $ 15 billion cut ($ 10 billion from Treasury, $ 5 billion in mortgage-backed securities) per month as the rate of outcome. More members are forecasting a rate hike for 2022, making it a 9 to 9 split, and more rate hikes overall for 2023 and 2024.
Housing data has shown existing home sales have fallen and almost match estimates, mortgage applications up 4.9% and today we have preliminary manufacturing PMIs (Purchasing Managers Index). and services, preceded by unemployment claims.
Outside the United States, news of Chinese real estate giant Evergrande’s on-shore bond payments is seen as a plus, but avoiding the larger offshore dollar bond can still put assets at risk in volatile movements. even if he has a grace period of 30 days if he misses this payment.
Technical Analysis, Insight, Strategies and Dow Levels
For equities, it was a strong session in terms of risk appetite that pushed Wall Street past its previous first and second resistance levels, with conformist breakout strategies outperforming with (so far) movement. which brings it down to its lowered average, further from the widened lower end of the band with an increasing ADX (Directional Motion Index) reading.
Cyclicals as a sector outperformed and in component performance place Boeing Co (all sessions), Chevron Corp (all sessions) and financials like American Express Co (all sessions) and Goldman Sachs Group Inc (all sessions) in the lead, only a handful in the red where it was mostly health stocks.