Stocks hit new highs after Fed tapers

“If you can learn to create a state of mind that is not affected by the market’s behaviour, the struggle will cease to exist.” – Mark Douglas

 

 

HEADLINES

 

 

• Fed Set to Begin Bond Buying Taper This Month
• Dollar dips after Fed confirms beginning of taper
• Gold settles lower after good ADP jobs data, but finds support after expected Fed decision on tapering bond buying
• Oil Sinks With U.S. Supplies Rising and Iran Talks Set to Resume
• Stocks rise to records as market digests Fed's tapering announcement
• Ether firms following U.S. Fed, hits record high; bitcoin trails

 

 

FOREX

 

 

Fed Set to Begin Bond Buying Taper This Month

 

The Federal Open Market Committee on Wednesday detailed plans to begin scaling back asset purchases later this month and said the bar to begin the lift-off in rates would be more "stringent."

The monthly bond purchases of $120 billion -- $80 billion in Treasuries and $40 billion in mortgage-backed securities – would be trimmed by $15 billion a month. Under the taper plans, the Fed will reduce monthly Treasury purchases by $10 billion and mortgage-backed securities by $5 billion. Still, the Fed's balance sheet will continue to expand, but at a reduced pace. 

 

 

Dollar dips after Fed confirms beginning of taper

 

The dollar eased on Wednesday after the U.S. Federal Reserve said it would begin unwinding its pandemic-era stimulus but held to its belief that high inflation would prove "transitory" and likely not require a rapid rise in interest rates.

The Fed announcement follows meetings of the Reserve Bank of Australia on Tuesday and the European Central Bank last Wednesday, both of which pushed back against market pricing of tighter policy. The Bank of England meets on Thursday.

 

 

COMMODITIES

 

 

Gold settles lower after good ADP jobs data, but finds support after expected Fed decision on tapering bond buying

 

Gold settled lower on Wednesday after the ADP private sector jobs report saw employment increase more than expected, but then found some support after the Federal Reserve announced plans to taper its bond-buying program, as expected. Gold prices had settled lower for the session following the better-than-expected ADP data. Privately run U.S. businesses created a fairly strong 571,000 new jobs in October, an ADP survey found.

 

Oil Sinks With U.S. Supplies Rising and Iran Talks Set to Resume

 

Oil fell by the most since in nearly two months after a report showed American crude inventories rising and Iran said nuclear talks are set to resume this month. Futures in New York fell 3.6% on Wednesday and extended losses after the market’s close following Iran’s announcement that talks would resume on Nov. 29. Meanwhile, U.S. oil supplies rose to the highest since August, according to a government report. OPEC+ meets virtually Thursday to review output plans.

 

 

STOCKS

 

 

Stocks rise to records as market digests Fed's tapering announcement

 

Stocks gained Wednesday afternoon as investors digested a key monetary policy decision from the Federal Reserve, which included a formal announcement of the central bank's start to tapering its pandemic-era asset purchases. The S&P 500, Dow and Nasdaq each rose to record levels for another session.

 

 

CRYPTO

 

 

Ether firms following U.S. Fed, hits record high, bitcoin trails

 

Ether, the world's second-largest cryptocurrency, hit an all-time high on Wednesday, catching up with bitcoin's rally and riding on news of wider blockchain adoption. The ether token, which underpins the ethereum blockchain network, rose as high as $4,670.81, as of 3:15 p.m. EDT.

The cryptocurrency extended its gains, breaching the previous day's $4,600 level, after the U.S. Federal Reserve announced a tapering of its asset purchases. Ether is up more than 10% this week.

 

 

CHART

 

 

Wall Street 30 – Daily Candlesticks

Source: GKFX Prime Metatrader 4

WS30 has hit a fresh record high after breaking above the top of a 6-month old rising channel. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://finance.yahoo.com/news/oil-tumbles-u-piles-pressure-074234884.html
https://finance.yahoo.com/news/stock-market-news-live-updates-november-3-2021-221407830.html
https://www.investing.com/news/economy/fed-keeps-rates-on-hold-set-to-begin-bond-buyingtaper-this-month-2666534
https://www.reuters.com/business/cop/ether-scales-4600-record-high-bitcoin-trails-2021-11-03/
https://www.reuters.com/business/cop/dollar-hovers-near-peaks-fed-heads-taper-2021-11-03/
https://www.morningstar.com/news/marketwatch/20211103616/gold-settles-lower-after-good-adp-jobs-data-but-finds-support-after-expected-fed-decision-on-tapering-bond-buying