How major USA stock market indexes fared on Monday
- Author: Zachary Reyes Mar 15, 2017,
Mar 15, 2017, 16:50
The Dow Jones industrial average fell 44.11, or 0.2 percent, to 20,837.37.
Investors looked ahead to the Fed's two-day meeting that starts on Tuesday. It has made session high at 1.3494 and lows at 1.3454 levels. Traders saw a 94% chance that the United States central bank will lift interest rates by 25 basis points on Wednesday. The Labor Department said consumer prices rose at a slower pace in February as clothing and housing costs rose and auto and gasoline prices fell. "There's some initial upside from the jobs report but most people are waiting and watching to see what the central banks say later in the week", Andrew Sullivan, managing director for sales trading at Haitong International Securities Group in Hong Kong, told Bloomberg News.
The modest rise comes as oil prices appeared poised to snap their deepest losses since November.
USA long-dated and benchmark Treasury yields edged lower on Tuesday after a drop in oil prices was viewed as a deflationary sign, but the drop in yields was limited as investors awaited the Federal Reserve's policy statement on Wednesday.
ACKMAN OUT: Valeant Pharmaceuticals fell $1.31, or 10.8 percent, to $10.80 after one of its biggest investors sold its entire stake in the company. "Market expectations have been raised dramatically ahead of the meeting by a coordinated onslaught of hawkish commentary from policy makers, to the point that a rate hike is now around 94 percent priced in".
UK's benchmark FTSE 100 closed down by 0.1 percent, the pan-European FTSEurofirst 300 provisionally closes down by 0.34 percent, Germany's Dax ended flat, France's CAC finished the day down by 0.6 percent. Brent crude, which is used to price global oils, dropped 70 cents to $50.65 a barrel in London.
At the final bell, American benchmark West Texas Intermediate (WTI) was trading at $47.94 a barrel with a 1 percent decline. The two-year yield dipped to 1.36 percent from 1.38 percent, and the 30-year yield sank to 3.17 percent from 3.21 percent.
"We're thinking the 2017 dots indicating three hikes in total is unlikely to be changed".
The euro edged up 0.2 percent to $1.0624 EUR= , as concern about Wednesday's Dutch parliamentary election was offset by market speculation the European Central Bank may be ready to wind down its stimulus program.
The U.S. Dollar Index weakened 0.2% to 101.47 in Asia hours ahead of a much-anticipated Federal Reserve rate hike.