Mixed sign on Wall Street as the focus shifts to the Federal Reserve

wall street money

Wall Street registers mixed sign at the beginning of the session on Wednesday awaiting the Fed. The three main US indices continue to be in the maximum zone despite the relaxation that they have experienced this Tuesday. Jerome Powell’s men end their two-day meeting this Wednesday, after which they will announce the update of the monetary policy wielded by the central bank.

The Federal Reserve is expected to remain unchanged, but some are already waiting for signs that it may begin to ease its aggressive debt-buying program. Furthermore, the Fed’s minutes may anticipate a possible rate hike by 2023.

The central bank meeting, which will be accompanied by Powell’s usual press conference, will take place amid a climate of concern about inflation, which does not stop rising and which more and more entities have stopped considering a problem transient.

“The key to taking into consideration in the Powell conference is to know if the discussion about ‘tapering’ is still there and the time frame with which they are working,” says the experts from Quill Intelligence. “Market participants anticipate a clear and strong signal of ‘tapering’ for the Jackson Hole summit next August,” they add.

On the geopolitical level, all eyes are on the first meeting between Biden and Putin, although not much progress is expected. “We do not expect a large set of results from this meeting,” a senior US official told reporters aboard Air Force One as Biden flew to Geneva.

Regarding the ‘cryptos’, analysts show doubts whether the bitcoin rally that started last Sunday will continue or not after having yielded the $40,000 mark. At the moment, the queen of digital currencies falls 2.15% to $39,243.

“Technical analysts would tell you that when it lost $40,000, it sent a negative signal, and now that it has recovered that level, it sends a positive signal,” says Art Hogan, chief strategist at National Securities. “The cryptocurrency market is coming back to life,” Arcane Research says in a note to clients.

On the other side of the Atlantic, the Ibex 35 is trading flat with pending investors from the Fed and Solarpack, which soars after receiving a takeover bid from Sweden’s EQT at 26.5 euros per share. Finally, in Asia the stock markets have closed with falls, especially in China, which has seen its retail sales fall in May.

COMPANIES AND OTHER MARKETS

At the corporate level, Ryanair has asked Boris Johnson, British Prime Minister, to let those vaccinated fly to and from the European Union in the hope of saving the summer.

Also, Brussels already assumes that the 55 million doses of Janssen agreed for the second quarter will not arrive. The Member States have expressed their great concern about this problem with deliveries, “said Stefan de Keersmaecker, spokesman for the Community Executive’s Health, at a press conference.

In other markets, West Texas oil fell 0.04% to $72.06. The euro depreciates 0.09% and changes to 1.2113 dollars, while the ounce of gold grows 0.16%, to 1,859 dollars. And the yield on the 10-year American bond fell slightly to 1.491%.