FXStreet (Guatemala) – Stocks has a better day on Wall street today. They rose on the back of a rally in oil prices and better-than-expected earnings reports. Crude futures gained 3.4% to $31.38 a barrel by the close while the Dow climbed 1.6%, to 16139 in recent trading or by 254 points. The S&P 500 was also up 1.2% and Nasdaq 1%.
“Equities and oil continue to be moving in the same direction. During the first few weeks, they were moving down together and now up together. It is frustrating for asset managers. Large cap and small cap stocks moving together as if everything is being tarred with the same brush, ” explained analysts at Brown Brothers Harriman.
Looking ahead, the FOMC is fast approaching and a dovish statement could be the catalyst to further boost risk on the street and see stocks rally.
“Last week, the ECB gave risk sentiment a much-needed boost with very dovish comments at its press briefing, contributing to a fall in the euro. The Fed’s range of options for pushing back at this in the January FOMC statement are very limited, but it could re-insert words of caution similar to those used back in September 2015 when China slowdown fears led it to postpone its anticipated rate hike.
Whilst the forthcoming FOMC statement does not provide room for elaborate comments, we imagine the Fed will be pleased with how its policy tools are working to keep the effective fed funds rate within the new target range. Some acknowledgement of this from the Fed is likely in March,” explained analysts at ING Bank.
(Market News Provided by FXstreet)