Friday 11 January 2019

US stocks rise as Fed chairman reiterates monetary policy flexibility and patience

Markets were mostly higher on Thursday.

The S&P 500 rose 0.5 percent and the STOXX Europe 600 rose 0.3 percent.

However, earlier in the day, the Nikkei 225 fell 1.3 percent.

Marko Kolanovic, global head of quantitative and derivatives strategy at JP Morgan, told CNBC that “both mutual fund and pension flows suggest positive market performance in the future”.

Investors may also have been encouraged by remarks by Federal Reserve Chairman Jerome Powell during a discussion at the Economic Club of Washington that the central bank will be “flexible” and “patient” on monetary policy as inflation is “under control”.

Still, Powell also did warn that the “long-run fiscal, nonsustainability of the U.S. federal government” is something that he is “very worried about”.

No comments:

Post a Comment