Reports on Friday the Federal Reserve Bank would end its balance sheet wind-down sooner than expected help weaken the U.S dollar and supported U.S. stock markets.
Reports on Friday the Federal Reserve Bank would end its balance sheet wind-down sooner than expected help weaken the U.S dollar and supported U.S. stock markets.
Despite increased estimates of the cost of the government shutdown on U.S. GDP and the disruption of some government issued economic reports, the U.S. dollar strengthened and U.S stock markets rose on reduced concerns of slowing U.S. growth, optimism over a U.S. China-trade agreement and a much-stronger-than-expected industrial production report released on Friday.
uoyed by US-China trade talk progress, FOMC minutes indicating a more flexible U.S. Federal Reserve Bank and a weaker-than-expected CPI number, the S&P 500 increased 2.5% and the U.S. dollar weakened 0.57%.
erns over weak China and U.S growth primarily responsible for setting the tone.
Despite Chinese trade concessions (ie, reduction of automobile tariffs and the resumption of U.S. soybean purchases), fears of weaker global growth in general and of weaker Chinese growth in particular spurred increased concerns of slower U.S. growth.
Receding expectations of improved trade relations between the U.S and China combined with concerns of weaker economic growth in the U.S. moved the U.S dollar, U.S stock markets and U.S. treasury rates lower last week.