US Stocks Drop Ahead Of More Powell Testimony 1 March 2018

Current Mortgage Rates Hold Higher on the Week

A correction now seems to be underway ahead of the next key inflection point in this narrative: Congressional testimony from newly-minted Fed Chair Jerome Powell.

US oil prices fell 2.3 percent and gasoline futures tumbled after the USA government said crude inventories rose more than expected while gasoline stocks posted a big build instead of the draw that was forecast.

Federal Reserve Chairman Jerome Powell said on Thursday the US economy does not appear to be overheating, though the head of the New York Fed suggested a faster pace of interest rate increases may still be in the offing for 2018.

S. interest rate increases this year rather than three.

Referring to the wild swings in the stock market that occurred earlier this month, Powell said the Fed does "not see these developments as weighing heavily on the outlook for economic activity, the labor market and inflation". We've seen some data that in my case will add some confidence to my view that inflation is moving up to target. We need to see a recovery back above 1.2320 to stabilise and a return to the recent highs near 1.2500.

Couple that set of optics with early returns on economic policy and Wall Street likes what it sees from Powell.

But he emphasized this does not mean the forecast will be upgraded.

"I am committed to clearly explaining what we are doing and why we are doing it", Powell said.

The rupee closed at Rs 65.18 to the dollar, about 0.44% from its previous day's close of Rs 64.80.

Pending Home Sales were a disappointing -4.7%. Traders were looking for a 0.4% increase. When bonds are paying more in interest, they can lure income investors away from dividend-paying stocks.

The dollar hit a three-week high versus a currency index, with investors still bullish after Powell noted rising U.

The stock market reacted badly to the possibility that the rate might rise 1 percent this year instead of 0.75 percent because even slightly higher borrowing costs can make a company less profitable.

Taking out $1309.00 will reaffirm the downtrend.

Focusing on the technical picture, the dollar bounced back to life against a basket of major currencies on Tuesday, with prices venturing towards the 90.40 region. Until it does, the bank is barred from increasing its assets - an unprecedented restriction for one of the largest USA financial institutions.

When a Fed chief testifies before Congress, he or she is generally understood to be speaking for the rate-setting Federal Open Market Committee. Overall consumer prices, as measured by the price index for personal consumption expenditures (PCE), increased 1.7% in the 12 months ending in December, about the same as in 2016.

The text also omitted any reference to an extended transition period, which the United Kingdom has asked for as the European Union turns the screw on the United Kingdom government to lay out exactly what sort of plans they have in mind with respect to the future trade relationship.

In addition to Powell's hawkishness that took the market by surprise, Chinese purchasing managers' index (PMI) data disappointed the market too with manufacturing PMI falling to 50.3, from 51.3, and non-manufacturing PMI dropping to 54.4, from 55.3.

Look for volatility today with the release of the Core PCE Price Index at 1330 GMT.

Sun Hung Kai Properties rose 0.7% after the Hong Kong property developer reported a 60% jump in net profit attributable to shareholders for six months ended 31 Dec. Hong Kong Exchanges & Clearing declined 2% despite the bourse operator reporting a 28.3% rise in net profit for year ended Dec. 31, in-line with estimates.