Daily market review – July 13th 2017

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The Federal Reserve Chairman Janet Yellen said yesterday that the central bank is closely monitoring the moderate level of inflation in the United States, but she continues to expect that the Fed will begin to reducing assets in its balance sheets by $ 4.5 trillion later this year.

Yelan added that the central bank intends to continue raising the interest rates and begin to reduce the volume of assets in its balance sheets, but didn’t provide any new information on the timing of these measures.
Analysts predict that the Fed will begin reducing the volume of bonds in its balance sheets in September.

Regarding the interest front, Yelan signaled in her testimony that the Federal Reserve may not have to raise the rates in the US many more times: “Since the neutral interest rate is now quite low in historical terms, the federal interest rate will not have to cost so much to reach a neutral policy”

In response to Fed Chairman’s remarks, Wall Street’s stock markets closed on a positive note and the blue-chip stocks hit record highs.

In addition, the price of gold rose for the third day in a row.
The price of gold closed at aprice level of $ 1,219.1 per ounce, up 0.4%.

The trading in most Asian markets this morning is positive, following Wall Street gains on the back of optimistic remarks by Federal Reserve Governor Janet Yellen that the economy is expected to continue to grow at a moderate pace over the next two years.
Tokyo drops 0.1% as tge Japanese yen strengthens.
Hong Kong rising by 1.1%, Shanghai rises by 0.4%, Singapore is up by 0.6%.

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