Global Market news: Wall St in instability as traders consider Fed minutes

Wall street was in a state of uncertainty on Thursday, as traders factored in the Fed’s latest policy meeting, and Trump’s tough talk on trade.

Wall St in instability as traders consider Fed minutes

The Fed minutes revealed a majority member vote, agreeing that another interest rate increase was "likely to be warranted soon," while debating when to pause further hikes.

This comes after, Fed Chair Jerome Powell had said on Wednesday that US interest rates were "just below" neutral, causing many investors to read the remarks as signally a hold on further hikes.

The market reacted to his comments, with 80% factoring in a December interest rate hike pushing the US 10-year bond yield below 3% on Wednesday.

The US yield curve flattened in response to the US. Federal Reserve news.

US stocks had also opened lower amid apprehensions over US China trade talks.

The Dow Jones Industrial Average fell 27.59 points, to 25,338.84, the S&P 500, fell 0.22% to 2,737.8 and the Nasdaq Composite dropped 0.25 % to 7,273.08.

Oil prices rose on Wednesday after talks Russia and OPEC had accepted the need for cuts in oil production.

US crude rose 2.31% to $51.45 per barrel and Brent closed at $59.51, up 1.28% on the day.

Investors cautious on trade before Trump-Xi G20 meeting

Analysts say investors were also waiting for US President Donald Trump and Chinese leader Xi Jinping to discuss trade at the G20 summit over the weekend.

Trump said on Thursday there was "a long way to go" on tariffs with China and urged companies to avoid building products in China and keep business in the US.

IG market Analyst, Kyle Rodda says the G20 summit will bring to many issues that would make trader nervous, including, Brexit, oil prices and global economic prospect.

“Underneath those we also have new tensions between Russia and the Ukraine, Italy and its fiscal situation, the Saudi’s and the controversy surrounding the Khashoggi murder, along with a myriad of regional issues faced around the globe.

It’s a true tinderbox, that unsurprisingly would have world leaders, and thus market participants, very anxious.” Mr Rodda said.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.  Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

All trading involves risk and losses can exceed deposits. Trading CFDs may not be suitable for everyone so please ensure that you fully understand the risks involved. All trading involves risk and losses can exceed deposits.