Message from the Fed disappoints the market and Wall Street closes with losses of almost 2%


The last meeting of the Federal Reserve's monetary policy hit hard on investors' moods. This, as the market expected to see an even more moderate Fed amid signs of economic slowdown.

At the close of the trading session, the Dow Jones fell 1.49%, while the S & P500 lost 1.54%. Meanwhile, the Nasdaq yielded 2.17%.

While the Fed Committee projections for rate movements in 2019 anticipate two increases instead of three, this did not quell investors' nervousness. The market consensus was betting only an increase for next year, considering the signs of lower economic growth.

Thus the message from the US central office triggered a wave of sales in New York Square over the doubts that monetary policy could have an impact on economic performance. According to Bloomberg, investors expected an "even less aggressive" approach.

Earnings in Europe

Meanwhile, the Old Continent stock exchanges said farewell to the surge fueled by the positive signs of the trade war and ahead of the Fed message. Euro Stoxx 50 – which brings together the top 50 companies in the Euro Zone – rejected the session. with an increase of 0.37%. While France's Cac 40 and Germany's Dax advanced 0.49% and 0.24%, respectively.

End of the trade war closer? US and China mark next meeting for January

Beyond the slightest fear of the commercial conflict, another engine that pushes the squares of the Old Continent is the agreement that Italy reached with the European Union for the Budget of 2019.

Italy reaches agreement with Europe on budgets for 2019

Despite good weather early in the session, major Asian indicators closed on mixed terrain. Japan's Nikkei was down 0.60%. Meanwhile, Hang Seng of Hong Kong recovered 0.20%, while CSI 300 of Shanghai fell 1.19%. According to Bloomberg, the performance is explained by the disappointing debut of the Japanese group's telecom business, SoftBank.

As for the commodity market, oil prices rebounded after yesterday's sharp drop. WTI – indexed in the United States – closed at a 2 percent advance to $ 47.2 a barrel, while Brent rose 1.74 percent to $ 57.24 in Europe.


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