With the Fed decision and press conference looming tomorrow and with various markets at key levels, this is an important week for equity markets. The S&P500, for example, is attempting to push to new record highs, US 10 year bond yields have stalled at around the 1.60 per cent yield level, while the UK’s FTSE100 index is stuck in a pennant formation (i.e. since the start of 2021).
Added to that, the NASDAQ100, the centre of recent global equity market weakness, is close to a major resistance area. How this resolves itself over coming trading sessions is likely to be critical for the shape of the next few months’ price action. The outcome of the Fed meeting tomorrow is also likely to be a key piece of that puzzle.
Whilst its all eyes on the Fed tomorrow, today’s US macro data is also of interest. That includes some housing data (i.e. NAHB homebuilders index, released 2pm London time), ahead of housing starts and building permits data tomorrow, as well as US retail sales (February data, 12:30pm London time).