minus academy faq plus academy faq Check in circle Apple Android Home Magnifer Calculator Mail Email Facebook Twitter RSS Linkedin Linkedin hollower Headphones Wechats Instagram Line Mail 2 Phone Phone 2 Minus Plus Arrow right Arrow left (variant 2) Arrow right (variant 2) Brand logo Brand logo not filled Hamburger Flag of the Hong Kong Flag of the US/GB Flag of the US/GB Flag of the US/GB Flag of the China Flag of the China Flag of the China (traditional) Flag of the Taiwan Flag of the Hong Kong Flag of the Spain Flag of the Russia Flag of the France Flag of the German Flag of the Portugal Flag of the Italy Flag of the Poland Flag of the Czech Flag of the Hungary Flag of the Sweden Flag of the Bulgarian Flag of the Finland Flag of the Lithuania Flag of the Denmark Flag of the Croatia Flag of the Estonia Flag of the Norway Flag of the Romania Flag of the United Arab Emirates Flag of the United Arab Emirates Flag of the Indonesia Flag of the Malaysia Flag of the Korea Flag of the Korea Flag of the Samoa Flag of the Vietnam Flag of the Thailand Flag of the Turkey Flag of the Japan Cross Cross large User Arrow down Arrow up Cube Info list Data comunication Clock Slash
Market Outlook
Hopes on Fed's policies prop up investment sentiment

ZFX: Hopes on Fed’s policies propped up the investment sentiment

21-05-2020 04:19

As the market expects the Fed will take further action to cope with the economic downturn, investment sentiment turned to be bullish again on Wednesday.

Some other factors were also supportive, including reopening economies, rally of the oil prices, hopes on the vaccine development and relatively weak dollar, making the three major Wall Street indexes jumped higher.

The FOMC minutes of April meeting showed that members were worried about the economic outlook of the US as the coronavirus created an “extraordinary amount of uncertainty and considerable risks to economic activity in the medium term”. Rate would not be raised until the economy is back on the track. Furthermore, all members agreed that the Fed will use full range of tools to support the US economy.

Gold fell during the Asian session on Thursday. Investors seems are looking forward to the economic recovery, lowering the safe-haven demand.

ZFX analyst Jacob Leung said that the market is currently focusing on the Fed and expects more stimulus measures, triggering the “risk on” sentiment. The VIX dropped below 30, meaning that risk appetite is dominated. Some fundamentals or bearish factors may even not be reflected in the market move, like China-Australia relations, China-US tension.

Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.