Demand for Risky Assets Has Grown. Investors Expect the Speech by Fed Chairman

Demand for risky assets has resumed. The US and China are moving towards a trade agreement. Donald Trump postponed the increase in duties on Chinese imports and said that he could soon sign an agreement with Chinese President, Xi Jinping, to end the trade dispute if their countries could overcome the remaining controversies. Trump also said that the negotiators are "very, very close" to the deal. The dollar index (#DX) closed the trading session in the red (-0.10%).

The political uncertainty concerning Brexit remains. The British pound has updated monthly highs after reports that Theresa May wants to postpone the Brexit, scheduled for March 29. Today, investors are focused on the speech by Fed Chairman, Jerome Powell, to the US Congress. The official will evaluate the current state of the economy and the monetary policy of the country. We also recommend paying attention to economic releases from the US.

The "black gold" prices are consolidating after a sharp collapse the day before. Yesterday, the fall in futures for the WTI crude oil exceeded 3%. Donald Trump once again criticized the activities of OPEC. At the moment, oil quotes are testing the mark of $55.35 per barrel. At 23:30 (GMT+2:00), a report on the API weekly crude oil stock will be published.

Market Indicators

Yesterday, the bullish sentiment was observed in the US stock market: #SPY (+0.14%), #DIA (+0.28%), #QQQ (+0.36%).

The 10-year US government bonds yield is at 2.65-2.66%.

- Inflation report hearings in the UK at 12:00 (GMT+2:00);
- Statistics on the real estate market in the US at 15:30 (GMT+2:00);
- CB consumer confidence index in the US at 17:00 (GMT+2:00);
- Speech by Fed Chairman Jerome Powell at 17:00 (GMT+2:00).

We also recommend paying attention to the speech by the UK Prime Minister Theresa May.

by JMarkets, 2019.02.26

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.