American stocks ended up in green numbers


American stocks on Thursday 1/31/2019 ended up in green numbers. Indices S&P 500 and Dow Jones Industrial Average were headed to their best January result in the past 30 years, after the FED announced that they are stopping the increase of interest rates and that their upcoming policies will be derived from the new economic data. Dollar index DXY was on an increase of 0.06% on the Friday morning 2/1/2019 at the value of 95.64 USD points and a currency pair EUR/USD was traded at 1.1438 USD for EUR in a growing trend for USD at 0.05%.

Even though the US stock index Dow Jones Industrial Average (DJIA) slightly dipped by 15.19 points (meaning 0.06% of its daily point value) to 24,999.67 points, the wider US stock index S&P 500 increased by 23.05 points (0.86% of its daily point value) to 2,704.1 points and NASDAQ Composite increased by 98.66 points (1.37% of its daily point value) to 7,281.74 points. American stock indices were indeed thriving in January. Stock index S&P 500 has increased since the beginning of the year by 7.8%, Dow by 7.1% and NASDAQ even by 9.8%. For Dow Jones, this means the best January result since 1989 and for the stock index made up mostly of technological companies NASDAQ its the best January result since 2001.

FED (Federal Reserve System) announced after a two-day long conference FOMCFED (Federal Open Market Committee), that they will be patient with the increase of interest rates, what could potentially mean end of their increase. As one of the reasons for the more conservative policy FED lists the turbulence on the market. They also released another statement about a 4 trillion balance sheet. Market has responded to remarks of Jerom Powell as a sign of a more moderate approach. At least until more unexpected factors don’t come into play, such as the growth of global economy slowing down, which would force the monetary policy makers to act.

Traders have also closely followed the development of relations between USA and China. Negotiators tried to come up with an outline for an agreement which could solve their market disagreements. President Donald Trump said on his Twitter, that there won’t be any final agreement, until he meets with his “good friend president Xi to discuss and agree on several complex questions.“ Reaction of the market resulted in the decrease of the American dollar (USD against Japanese yen (JPY), where the currency pair USD/JPY was traded at 108.87 JPY per USD on Friday morning 2/1/2019.


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