The news cycle has been thick and heavy lately with updates about so many different major stories flying from the press. Sometimes it’s hard to keep on top of all of it.
The markets have been hyper-focused on the US interest rate decision coming today from the new Fed chair Jerome Powell but at this point, I’m not even sure that this is going to be the biggest market mover right now.
Trump’s trade war could easily overshadow the Fed as it now seems likely that the US will be smacking China with $60 Billion in annual tariffs, possibly by the end of the week. We can only anticipate how President Xi will respond.
On days like this, it’s usually best to just skim the headlines and try to determine which of them are going to affect the markets most.
For example, this story about a major crypto exchange delisting 82 alt-coins from their service might be rather valuable. This is interesting because it could cause alternative investors to actually shift funds around in order to get their money out of the affected alts. That type of re-valuation could have a consolidating effect as most people would rather shift those funds to more stable coins.
Always look for another angle. Always look for the positive side and the opportunity.
The main event today has been one that the market has been anticipating for several months already.
The adjustment in interest rates in the United States from 1.5% to 1.75% at today’s meeting has been expected by the market for several months already. So when they do pull the trigger at 18:00 GMT, the market will be more focused on the FOMC’s Statement that will be released at the same time.
Thirty minutes later, we’ll get a special press conference with the new Fed Chair Jerome Powell, which could be particularly interesting.