Global markets enjoy a positive sentiment at the moment after recent global worries fade. The U.S. Dollar rallied after Fed’s Yellen bullish comments on the strength of the U.S. economy. The announcement also sent the Gold falling to 5-week lows. In earnings, Nike shares fell by 3.5% on sales decline. Here are the 4 major things to know for today's trading day.
1. Dollar surge on Fed update
U.S. bond yields and the dollar continued to rise on Wednesday as markets continued to digest remarks a day earlier from Federal Reserve chair Janet Yellen.
Yellen backed the Fed’s call to forge ahead with at least one rate hike this year despite the fact that she admitted Tuesday that policymakers may have “misjudged” their readings of the labor market and inflation.
She once again insisted that the low levels of inflation would fade over time and that, despite uncertainties, it "would be imprudent to keep monetary policy on hold until inflation is back to 2%."
The USD was hovering at a 1-month high against other major currencies on Wednesday after Yellen’s comments with greenback strength pushing gold to 5-week lows.
On Wednesday’s data front, markets will digest August durable goods orders at 12:30 GMT and pending home sales for the same month at 14:00 GMT.
2. Global stocks move higher
Global shares rose on Wednesday as investors hoped for progress on major tax reform stateside. U.S. futures pointed to timid gains while waiting for the news.
Elsewhere, European stocks climbed to a 10-week high on Wednesday led by banks ahead of the update on U.S. tax reform, while Alstom shares surged after its rail merger with Siemens.
Asian equities also mostly benefited Wednesday on hopes that Trump and Republicans will be able to push forward their new fiscal plan, though Japan’s Nikkei was an outlier, ending with losses of 0.2%.
3. Oil slips ahead of fresh data
Crude oil prices edged lower on Wednesday, but remained in sight of their strongest level in months amid speculation weekly supply data due later in the session will show U.S. crude stockpiles declined for the first time in four weeks.
The U.S. Energy Information Administration will release its official weekly oil supplies report at 14:30 GMT. After markets closed Tuesday, the American Petroleum Institute said that U.S. oil inventories unexpectedly declined by 761,000 barrels in the week ended September 22 as refiners raised output.
4. Nike falls by 3.5% after reports
Shares in Nike slumped 3.5% in pre-market trade Wednesday despite reporting better than expected earnings after the market close a day earlier as the sports apparel company gave a bleak outlook on U.S. demand.
The world’s biggest sportswear maker expects North American sales to decline again this quarter, following a 3% dip in the region last quarter.
In positive earnings news, shares of Micron Technology jumped nearly 5% as the chipmakers quarterly earnings beat consensus and the firm provided a better-than-expected forward guidance.
