There were concerns about the Fed meeting and the Brexit process, which ended on Wednesday, on the agenda of the global markets last week. In an environment of signs of economic slowdown, the Fed did not anticipate an interest rate hike this year and ended the three-year tightening of its monetary policy. President Powell said the Fed would stop the downsizing in September, saying the policy interest rate will remain at its current level of 2.25 - 2.50% at least during this year. Investors turned to interest rate cut pricing at the end of this year, while US Treasury bond yields fell to their lowest level since early 2018. Although the dollar index lost 0.65% after the Fed meeting, it closed the week horizontally by compensating the losses rapidly. Fed President Powell said the risks to Britain's exit from the EU, US-China trade talks and even the outlook for the US economy continue. Following the meeting, tough gains were spearheaded by leading technology stocks on Wall Street, with US indices reaching a five-month high. On the European side, indices were mostly negative due to Brexit uncertainty. European Union leaders decided to postpone Brexit until May 22, otherwise April 12, if May’s Brexit agreement is approved in the British parliament next week. Concerned that the US would enter recession, investors fled from risky assets and turned to safe harbors and the weather reversed on Friday. The ongoing uncertainty regarding the Brexit process and the ongoing trade negotiations between the US and China strengthened the demand for safe haven.
As a result of the decline in the dollar following the FOMC meeting, copper has tested the highest level since July 2018 at $ 6555.5. After the weakening of the Dollar after the Fed's rapid recovery, European and US PMI figures on Friday, especially on the weak side of the production was faced with a sharp decline in copper prices. LME copper closed Friday at $ 6325 with a 1.67% loss, the largest weekly loss since December with 1.66%.
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