Wednesday, January 27, 2016

Crude oil prices rebounds, high volatility stocks market and oil prices continues in 2016

Good day fellow, American Stocks rallied on Tuesday as the US-markets-follow-Asia meme was broken after stocks in China mainland and Japan sold off overnight in a continuation of the ugly action late in the day seen in the US on Monday. 

Meanwhile, Crude oil prices also bounced back on Tuesday after a more than 7% plunge on Monday. So the crazy volatility in oil prices — and frankly stocks — continues in 2016. high volatility maybe still on going until quarter 3 in 2016

Hot news from the authorities, The Federal Reserve will announce its latest monetary policy decision at 2:00 p.m. ET on Wednesday and it is expected to be a close-reading affair. Yes, it is one of those meetings, as no one expects the Fed will make any changes to its actual monetary policy (which currently pegs interest rates between 0.25%-0.50%). the Fed maybe hold the interest rates

As described from a note to clients late last week, Goldman Sachs outlined five changes it expects the Fed to make on Wednesday. Among these changes are the Fed continuing to describe economic activity as expanding at a "moderate" pace though household and business investment spending will probably be described as "rising moderately," a downgrade from the "increasing at solid rates" characterization the Fed opted for in December. 

The main factors for change the interest rates is described here, The Fed will also likely change its labor market language, its color around inflation expectations, and take away language that says it is raising rates (of course). Additionally, the Fed will likely acknowledge the recent turmoil seen in financial markets, in America also in global financial markets current situation

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