Beat the Street: investors position themselves ahead of Fed rate decision
The big economic events of the week include a rate decision from the US Federal Reserve and non-farm payrolls data. Traders are digesting earnings from McDonald’se. IGTV’s Angela Barnes has this round-up.
(Video Transcript Summary)
Global uncertainty increases pressure on stock market
In his video, Beat the Street host Angela Barnes talks about a few significant topics in the world of trading. She mentions McDonald's, Apple and the US Federal Reserve. She also talks about a deal between Solantis and Ford with the United Automobile Workers (UAW) union.
Angela then provides an overview of the state of the stock markets. All three major US indexes are expected to have a good start. However, recent events like the increase in Treasury yields and uncertainty around the world have put pressure on stocks. The S&P, one of the major indexes, has actually gone down this month.
Disappointing results from tech companies haven't helped either. People will be especially interested in how Apple does, since it's the biggest company in the S&P 500 index.
McDonalds share price rises by 2.64%
The host says McDonald's earnings report shows that their revenue, sales and income have all increased. As a result, the stock price has gone up by 2.64%. She also mentions other companies like Advanced Micro Devices (AMD), Pfizer, Caterpillar, Kraft Heinz, Abbott and Avis Budget who will be releasing their earnings reports soon.
Next, the focus shifts to the Fed. They will be deciding on a rate change, which could affect the US dollar. The Bank of England and Bank of Japan are also having meetings this week to discuss their monetary policies.
Investors are uncertain about what the Fed will decide, as this has been a topic of discussion since their last meeting in September. She also mentions that there will be some important employment reports coming out this week, including the one on non-farm payrolls.
Guest analyst Chris Vecchio, head of futures and forex at tastylive, joins Angela to discuss the potential impact on the US dollar and trading opportunities. Chris says that, despite rising Treasury yields, the dollar has still been doing well.
He says Fed officials have hinted that they may not increase rates again. The focus will be on the job market and the non-farm payrolls report. Chris believes that the dollar will remain strong, but it may be hard to see more gains.
Investors shift to safety of oil and gold
The host talks about the shift towards safe investments like oil and gold. Oil prices have gone down due to concerns about supply and demand. On the other hand, gold prices have gone up because of worries about geopolitical issues in the Middle East. Shaun thinks this trend will continue.
Thank you for watching IGTV! Stay tuned for more updates and analysis about the market.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
