Market Movements are Mixed as Traders Awaiting FED’s Stance on Rates Hike

Stocks traded steady today with as investors awaits further direction from Federal Reserve’s policy on taming inflation.

Futures of Dow Jones, S&P 500 and Nasdaq on open inched up by 0.18%, 0.39% and 0.67% respectively.

Meanwhile, European Union (EU) revised GDP growth for 2021 and 2022 to 5.0% and 4.3% from 4.8% and 4.3% respectively. Inflation in Eurozone was revised up to 2.4% from 1.9% and 2.2% from 1.4% for 2021 and 2022 respectively.

European Central Bank likely to start tapering following year September if inflation comes down to target level.

U.K. economy grew stronger than expected in November which might prompt policymakers tighten polices and raise interest rate.

Asian stocks closed mixed on Thursday with CSI 300 inched up by 1.61%, HSI climbed 1.01%, KOSPI down by 0.18% and Nikkei 225 closed climbing up by 0.59%. The SET index as well closed on positive note inching up by 0.12%. The MSCI Emerging Markets fells 0.1% whereas MSCI Asia Pacific index remained flat.

In the bond market, U.S. treasuries remained unchanged due to closure on holiday while most European bonds, Australia and New Zealand saw drop.

Dollar ticked up to the highest level in a year pressuring down emerging currencies. The direction of the dollar is to be dictated by FED’s stance on rate hike.

Traders in the oil market are weighing on White House’s policy on easing tightness int eh market by releasing additional reserve inventories.

Key development to bookmark this week are decisions taken by China’s Communist party’s secret meeting held in Thursday.