News and Information from the Financial Markets

The Dow Jones on 01.12.2023

The Dow Jones reached its highest level in two years yesterday, rising 520 points. The strongest impetus came from the core PCE price index, which fell more sharply than expected. Falling inflation is strengthening investors' belief that the Fed will abandon its aggressive path. Fed Chairman Jerome Powell will speak this Friday. Even if he chooses his words carefully, there could be one or two hints about the Fed's future monetary policy. In the run-up to Powell's speech, the PMI figures for the manufacturing sector will be published. Even if these are expected to rise, they will almost certainly remain well below the 50.0 mark above which growth is indicated, putting further pressure on the Fed.

If today's statements by Powell provide any indication of an easing of monetary policy, 36,000 points is the level that the Dow Jones could surpass today. The next resistance level could then be 36,200 points. However, if Powell, contrary to expectations, convincingly points to a continued restrictive course by the Fed, the 36,000 point mark is likely to recede into the distance and the index could lose yesterday's gains.

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Disclaimer: The authors' assessments of market behaviour contained on this website do not constitute financial advice or a solicitation or recommendation to buy or sell financial products, but are merely a personal assessment. If you incorporate the author's assessment into your decision, you do so entirely at your own risk. If you trade in financial products, you must be aware that you may incur a loss of up to the amount of your entire investment. Actively familiarise yourself with trading and the characteristics of the instruments, especially leveraged derivatives, and/or seek independent advice before investing your own money and only use capital that you can afford to lose.

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