Yellen paints the markets red

Heading into the close the FTSE 100 is 70 points lower, as markets continue to digest last night’s Federal Reserve meeting. 

Janet Yellen
Source: Bloomberg
  • Janet Yellen’s statement disappoints markets
  • Heavy selling into the end of the session
  • Focus now on PMI figures around the world and Greek elections

Markets can be a fickle thing. Going into last night’s Fed meeting, talk revolved around how damaging a rate hike would be to equity markets. It turns out that no hike can also be rather problematic, especially when accompanied by a sober statement and downgrades to economic forecasts.

As a result, stocks moved swiftly into the red this morning and have stayed there all day.

Equity bulls have had a difficult month so far, with each apparent rally swiftly knocked back. However, bears have not had it all their own way, and as each dip seems to bring out the buyers, we could be condemned to more range trading as the month grinds on. Certainly, there is little sign of any real turnaround in sentiment, even if we won’t have to worry about another potential Fed rate hike until later in the year.

As the new week looms on the radar, attention now shifts to Greece, if only for a while. It will be interesting to see whether a firm government can emerge or whether the Greeks will be condemned to vote yet again. Aside from this diversion, global PMI figures, particularly from China, will be the main focus, and there will be speeches from key US and European monetary policy figures to liven things up as well. 

This information has been prepared by IG, a trading name of IG Markets 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. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Een artikel zoeken

Form has failed to submit. Please contact IG directly.

  • Ik wens per e-mail informatie van IG Group bedrijven te ontvangen over handelsideeën en IG's producten en diensten.

Voor meer informatie over hoe wij uw gegevens mogelijk kunnen gebruiken, bekijkt u ons Privacy- en toegangsbeleid en onze privacy website.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.