US Markets

Stock markets were volatile on Wednesday but finished down after the Federal Reserve announced its third 75-basis point interest rate hike in a row.

• The S&P 500 is now down 10% in the last month and 21% from its all-time high.
• Every sector of the S&P 500 finished in the red, with communications, consumer, and materials stocks dragging down markets.
• The current 10 Year U.S. Treasury yield is set at 3.53090%

Canadian Markets

Canadian stocks rose on Wednesday despite the decline in U.S. markets.

• Bank of Montreal’s chief of fixed income and money markets, Earl Davis, said there is a “99.9%” chance that the Federal Reserve’s interest rate hikes will cause a recession in the U.S.
• He argued that while it may be “a policy mistake,” central bankers may want to cause a recession because that may be the only way to control inflation.
• The Bank of Canada has been increasing interest rates more aggressively than the Federal Reserve and, as a result, Canada, unlike the U.S., has seen a decrease in inflation.

European Markets

Stocks in Europe were up on Wednesday despite the negative moves in the U.S.

• The Stoxx 600 finished up nearly 1% after starting the day down almost 0.5%.
• Travel and Leisure stocks dragged down markets, losing 1.9%.
• Utility stocks outperformed all other sectors after gaining 1.8%.

ATHENA EA

#H1

#H4

#Time frames

Award Winning Momentum TradingPromo

Yearly Target:

220%

Risk/Reward:

0.36

Platforms:

MT4

Order Now

Historical Drawdown:

30%

Min. Deposit:

50$

Asset Types:

Forex

Presented by

Chris Svorcik

Verified on:

Asian Markets

Stocks in Asia were down on Wednesday due to the anticipation of the Federal Reserve interest rate hike that was announced after markets in Asia had closed.

• The Chinese economy continues to struggle as the county reassesses its Zero Covid policy, which has drawn criticism from citizens frustrated with the ongoing lockdowns.
• China is also suffering from a decrease in business from western countries as Beijing takes “ideological” decisions that undermine the interests of foreign companies.
• All major indexes in China saw losses, led by a decline in technology stocks, with the Hang Seng Tech index down 2.7%.

Commodities

Oil prices reached a nearly two-week low during U.S. trading hours on Wednesday due to the rise in interest rates.

• Prices rose significantly before trading began as Putin announced a major military mobilization in Ukraine.
• Brent crude lost 0.9% on Wednesday, while U.S. West Texas Intermediate was down 1.2%.
• During Asian trading hours, before U.S. markets opened, Brent gained nearly 3%.

Currency Exchange Rates

The U.S. Dollar continued its rise, gaining against all major currencies after the Federal Reserve announced its interest rate hike.

• The Fed now projects that interest rates will hit 4.4% by the end of 2022 and continue to rise in 2023.
• The Fed expects that it will begin to cut rates in 2024.
• The U.S. Dollar Index is currently at a 20-year high after rising nearly 1% yesterday.

Cryptocurrency

Bitcoin prices continued to fall on Wednesday due to the interest rate hike.

• Bitcoin is now below $19,000, at risk of crossing the $18,000 support level.
• Ethereum’s decline continued to outpace Bitcoin as it fell 3% during U.S. trading hours compared to a 1% decrease for Bitcoin.
• Kraken CEO Jesse Powell has announced that he will be stepping down.

Good trading,
Chris Svorcik