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Wall Street opened steady amid trade uncertainty

2018-09-12 02:32 pm | Resource: News | No Views : 45



 Wall Street opened steady on Wednesday ahead of the Federal Reserve's Big Book. Earlier, the Ministry of Labor recorded a slight decline in producer prices for the month of August.

US PPI falls 0.1% in August

The US producer price index fell 0.1% in August on a seasonally adjusted basis, the country's Bureau of Labor Statistics said on Wednesday.

In July, the statement indicated that final asking prices have not changed on a monthly basis, after adding 0.3% in the previous month. Seasonally adjusted, the index rose 2.8% per annum in the last month. The decline in final demand can be attributed to a 0.1% decrease in service prices, while the commodity index has not changed.

The final demand index excluding food, energy and business services was 0.1% higher in August per month, while jumping 2.9% annually.

Meanwhile, investors remained cautious about global trade. China is seeking permission from the World Trade Organization to impose sanctions on the United States, while US President Donald Trump said last week that additional tariffs on Chinese goods worth $ 267 billion were "ready."

Pollard: The Fed should take signals from markets

 US monetary policymakers should "put more weight than usual on financial market signals," said Federal Reserve Chairman James Pollard on Wednesday, arguing that "neither low unemployment nor real GDP growth gives a reliable signal of inflation Pressure because these experimental relationships have collapsed. " He added that current market information indicates that "the current monetary policy neutral or even somewhat constrained today."

"One of the great strengths of financial market information is that markets are looking ahead and taking into account all available information when setting prices, so markets have made a decision on the effects of the US financial package and ongoing trade discussions.

"Developments in emerging markets, and countless other factors to determine current prices," Bullard added. He warned that information about the financial market was not infallible and that its ability to predict future macroeconomic performance was limited. "

However, empirical evidence of a reversal of the yield curve in the US is relatively strong, and TIPS-based inflation expectations have generally been correct in predicting weak inflationary pressures in recent years. Therefore, policy makers and market professionals must take these financial market signals seriously, "he concluded.

US Stocks Open
  • The Dow Jones Industrial Average opened flat
  • The S & P 500 has stabilized
  • While the Nasdaq 100 lost 0.22% at the beginning of the session. Maxim Semiconductor Inc led the losses, falling by 5.70%.

The euro fell 0.08% against the dollar at 3:32 pm CET, trading at 1.15953.


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NASDAQ Technical Analysis 24 September 2018

Time frame Used - four hours The NASDAQ 100 is moving in a sideway direction in the near term The purchasing power managed to control the movement of the NASDAQ 100 index to reach the level of 7595 as it faced selling pressures and resistance to push it back to the level of 7516 trying to consolidate the top of the ascending trend line sub In view of the technical…

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