Dear Traders,
There were more losses on Wall Street on Wednesday, yet they were steadier compared to the wild losses experienced since Friday last week. The Dow Jones dipped less than 0.1%, while the S&P 500 fell about 0.5% and the Nasdaq dropped 0.9.
The declines in technology and energy shares weighed heavily on the markets, which have seen an amazing increase in volatility following a year of a steady trend and gains. The aggressive conditions came as investors are worried by policy shifts, including higher interest rates.
Analysts and economists had been predicting a correction following a whole year of steady rises and claim that there could me more corrections soon as the new tax cuts and tighter central banking policies are influencing the markets under the fear of faster than expected inflation rates that could lead to further rate hikes.
Whilst US stocks fell dramatically, stock markets around the world were also affected with the FTSE 100 closing 1.9% higher, in Paris the Cac-40 rose by 1.8% and Dax was up by 1.6%. In Asia, Japan's Nikkei 225 index pulled back from early highs to add 0.2%, Hong Kong's Hang Seng lost 0.8% and Australia's S&P/ASX 200 closed up 0.8%.
The situation will be very interesting over the coming days and weeks, and if analysts are correct, there could be some excellent trading opportunities on the US based indexes.
Best regards,
Mario Antov
Account Manager
Yadix Forex Broker
Telephone: +44(0) 20 3239 6117
E-mail: support@yadix.com
Skype: yadix.forex
Yadix a leading ECN/STP financial markets broker and provides direct to market order execution to 14 + liquidity providers with precision and lightening speeds, as such, Yadix welcomes all traders and strategies including expert advisors, Day Traders, Scalping and HFT strategies.
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