Will Fed minutes provide any clues?

Despite starting the day well into the red, global indices have pulled themselves back on an even keel as the week’s rally pauses ahead of the FOMC minutes. 

Janet Yellen
Source: Bloomberg

On the other end of the spectrum, the travel sector continues to suffer as the perceived increase in risk posed by terrorism this week has sent British Airways owner IAG and easyJet sharply lower today.

The Federal Reserve’s Dennis Lockhart set the tone for the US session, affirming his view that the Federal Open Market Committee should begin the process of normalisation with conditions now relatively settled. The release of surprisingly robust jobs data this month has certainly provided the base for Janet Yellen and co to finally implement that 2015 hike they desire. However, with a month until that decision has to be made, US economic data and Fed speeches will be analysed deeper than ever.

Tonight’s FOMC minutes forms one part of the jigsaw when trying to ascertain whether a December hike is going occur. However, given that the minutes originate from a meeting prior to the jobs report, any dovishness is likely to be largely disregarded and any hawkish tones likely to be prioritised.

Despite this week seeing crude prices hit the lowest level in over two months, the dominant performers of the day have come out of the commodities sector. Despite the feeling that commodity prices could remain depressed for a considerable time, these major firms have been great investments down the years and many will fancy their chances on a long-term proposition.

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