S&P500
The US market rises ahead of the Fed meeting.
The main US indices rose at the beginning of the week and posted new highs for the year. The Dow added 0.3%, the NASDAQ rose 0.6%, and the S&P500 was up by 0.2%.
Oil has risen for a second day. Brent crude hit $85, but so far it is below the high seen on October 25.
The gas crisis in Europe has slowed down slightly on expectations of an increase in Gazprom's oil supply in November and on the still-warm weather. Gas futures in Europe fell to $750 for the first time in 1.5 months.
The global infection rate is decreasing. Yesterday, +344K new cases were recorded in the world. The US and the UK reported +48K and +40K new infections respectively.
The S&P500 index is trading at 4,613 and is expected to be in the 4,570–4,630 range. The Fed's two-day monetary policy meeting in the US is scheduled to begin today. The Fed is expected to announce the start of the economic growth support program tapering. It is likely to cut their $120bn-a-month purchases by $15bn a month, which would end the program around June of next year. Analysts at Goldman Sachs have forecast that in July 2022 the Fed will raise its rate from the current 0-0.25% for the first time since spring 2009.
Yesterday's report showed that business activity in the US manufacturing sector continues to rise steadily. The ISM manufacturing index came in at 60.8%. Construction spending fell by 0.5%.
Tesla's shares have risen 40% since October 20. As a result, Elon Musk has become the first person in the world whose wealth has surpassed $300bn. It should be noted that such an increase looks very speculative and buying at current prices is risky.
Joe Biden spoke at a conference on combating global warming in Glasgow. He said high energy prices were not a reason to rethink the policy of abandoning hydrocarbons, but rather a reason to redouble efforts to expand green energy. Developed countries are willing to allocate up to $100 billion to support the development of green energy program in the world.
USDX is trading at 93.80 and is expected to be in the 93.50–94.10 range. The dollar fell slightly and the euro strengthened. The world's main currencies are likely to remain in current ranges until the Fed's decisions.
USDCAD is trading at 1.2390 and is expected to be in the 1.2350–1.2450 range. The pair is currently more volatile to US dollar dynamics than to oil prices. In case the dollar rises sharply on the Fed decisions, the pair could show a strong rally to 1.2500.
Markets are waiting for a new estimate from the Fed. Inflation in the USA has been hovering around 3.6% for several months now.
