When reporting on the state of the markets it’s easy to focus on only one thing and have the rest fall between the cracks. Reporting on stocks ignores the Forex, reporting on the Forex ignores stocks and bonds, and focusing on trends ignores the now. Sometimes it’s good to get an overall roundup of what ALL the markets are doing:
A volatile market was stabilized a bit last week in anticipation of the Federal Reserve making an interest rate announcement. Global shares rebounded from a six-week low, and the S&P 500 rose even higher than its previous record a year ago.
“There’s been a little bit of volatility recently and markets are rebounding,” said Joe Bell, a Cincinnati-based senior equity analyst at Schaeffer’s Investment Research Inc. “The Fed minutes surprised people. It seems they’re a little more ready to raise rates in June than people anticipated. When you take a step back the market continues to be grinding sideways.”
The sideways movement might continue because the optimism of a rebounding U.S. economy might be running headfirst into the Brexit vote. Depending on how the vote goes, this could send the markets spiking upwards, or spiraling downwards.
The All-Country World Idex of shares rose by .7%, the Stoxx 600 added 1.2% and the S&P 500 rose by a little more than half a percent. The U.S. benchmark snapped a three-week losing streak by climbing .3 percent and technology shares rallied to beat analyst expectations. This was helped by a boost from Applied Materials Inc. (AMAT) who is forecasting a good quarter.
Crude oil went down which allowed the week to finish a little more than three percent overall. This is due to a decline in US output and the wildfires in Canada. Gold also continued to slip for the third week in a row. This is a new losing streak for the precious metal.
The upcoming Federal Reserve announcement has proven to be a boon on the USD. It’s posted its biggest rally since November. It’s now gained a little over three percent in the last three weeks overall and saw gains against both the yen and the euro. The world currency in the biggest trouble is, not surprisingly, the GBP. Until the Brexit vote is completed, expect a lot of volatility for the pound in the upcoming weeks.