Effects from FED meeting – Closed record Dow Jones

According to big news out of the Federal Reserve kept the interest rate at 1.25% and Fed signalized that it will increase the interest rate one more time in 2017 and three times in 2018, U.S. dollar firmed up strong. Fed also announced it will begin reducing $4.5 trillion balance sheet in October so Dow Jones rose to record close after bank stocks surged but Nasdaq fell 0.08% with Apple and Microsoft both lower. I suggest to focus on the tentative Bank of Japan monetary statement that may keep its policy unchanged because of FED announced on Thursday.
The steady USD may give positive for Japanese export and Tokyo Stock Exchange. However, major indexes in Asia were mostly lower: Shanghai -0.67%, Hang Seng -0.01%, Singapore -0.12% on Thursday after the dollar and U.S. Treasury yields spiked. For Stock Exchange Thailand moves in both zones as other Asian markets but rose early in the morning after ministry of commerce released the good trade actual.
I am afraid about reduction 10 trillion dollar debt every quarter until reaching 5 trillion dollar per month in October 2018 make bond yields rise but it may result selling bond in the future. Therefore, I suggest to see U.S. inflation in September and ECB meeting in October as well as Draghi speech at 20.30 GMT+7 today.
The increasing U.S. crude oil inventories on Wednesday made Brent dropped a little bit but I think today crude price may not able to rise up and move flatly because of the stronger dollar but in long-term oil price may rise higher follow the OPEC supply reduction.

By Niramon Nitnitiphruet
Financial analyst, Olymp Trade

Olymp Trade Review