Global Stock Market Today
The global stock market is in a tail-spin and investors are still not sure how to digest the dovish FOMC message. This is the reason that we have seen a brutal day over in Asia today. The HSI index declined 1.58%. The ASX stock index also moved lower by 1.11%, while the Korean Kospi fell 1.07%. The Japanese Nikkei Index declined 0.67%.
All Eyes on BOE
Today it is all about the BOE’s monetary policy decision. Once again, no change is expected from the BOE; however, investors would like to know if the bank has any plans for a no-deal Brexit. Some may say that the policymakers are dealing with the Brexit negotiations as recklessly as possible, and the E.U. isn’t likely to entertain this.
The U.K Government doesn’t have much of a relationship with the second biggest economy of the world, China after banning the Huawei’s 5G technology. Given the fact that the government is struggling to bring the economic recovery to its gradual level, a no-deal Brexit remains a serious threat for the U.K’s economy and for the BOE.
Dow Index and S&P500 Index: Market Breadth
The Dow Jones’ market breadth didn’t change much yesterday as 70% of the Dow Jones stocks still traded above their 200-day moving average yesterday.
The S&P 500 stock breadth gained a little more momentum yesterday. 64% of the shares traded above their 200-day moving average yesterday. This is a change of +2% from a day earlier.
Stock Market Rally
The S&P 500 stock index failed to keep its head above water, and it fell 0.46%. The information technology sector led the index lower, and 6 out of 10 sectors closed lower.
GE stock contributed the biggest gain, soaring 10.7%. Illumina stock was the largest drag; it fell by 8.44%. The S&P 500 stock index is up 9.2% during this quarter.
The Dow index recorded gains of 36 points yesterday, and the Dow stocks moved the index higher by 0.13%. 14 stocks of the Dow Jones Index increased in value, and 16 shares of the Dow index moved lower. Boeing stock advanced higher by 2.43% and was the biggest mover for the Dow, while Home Depot stock dropped 1.38%, the biggest drag for Dow Jones industrial average index.