Fed will now be more cautious on next rate hikes amid 'rising global risks'.The Fed’s Yellen said the FOMC will move “cautiously” on rate hikes amid rising global risks and has “considerable” scope for stimulus last night. This statement sent US stocks to their highest levels year to date, with the S&P +0.88%, Nasdaq +1.67% and DJ +0.56%. The Dollar Index was down 0.85%. Gold regained its lustre. 10 year treasury yields dropped to 1.81% from 1.88% after Yellen’s speech. The implied probability for an April rate hike dropped to close to 0%, whereas the chance of a June hike is at 28%, down from 38% as compared to a day earlier. Asian equity markets continued to cool down on Tuesday. The Nikkei finished 0.18% lower despite a slightly weaker yen. The Shanghai composite lost 1.28% with shrinking volume. Singapore’s Straits Times Index was down 0.4%, extending its 6th day of consolidation. Oil dropped for the fourth consecutive day, down 6.4% from the recent high. This may have been expected as rising crude inventories have given traders reason to engage in profit-taking after its 50% rally since mid-Feb. Gold - Cash Key Technical levels to watch: Strong resistance zone between $1240-1286, which are 50% and 61.8% Fibonacci levels Immediate support level: $1193-$1200 50 Day moving average sloping upward
US SPX 500 - Cash Key Technical levels to watch:MACD dead crossed Immediate resistance level – 2082, 2132 Immediate support level – 2000, 1946 50 day moving average is sloping upward
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