US Stocks Dip Reaction to Fed Minutes

US stocks dipped on the news from the minutes of the Federal Reserve Banks decision to start unwinding the central bank’s balance sheet and reducing $4.5 trillion from before the year end.

Fed to Unwind Balance Sheet

The unwinding of the balance sheet could have an impact on the markets, this together with indications from some Fed officials and Janet Yellen, that this could see a rate hike. They also thought that the stock prices were relatively quite high to standard valuation measures.

Stocks Reaction

The Dow Jones industrial average fell 41.09 points or 0.2%, at 20,648.15, as 19 of the 30 blue-chip companies finished lower. The biggest drops in shares were J.P. Morgan Chase & Co. down -1.28 percent Cisco Systems Inc. -1.23 percent and International Business Machines Corp.IBM, -0.94 percent.

The S&P 500 dipped 0.31 percent down 7.21 points at 2,352., with nine of its 11 main sectors closing lower with financials and telecom stocks leading decliners. Energy shares fell 0.3%

The Nasdaq composite fell 0.6 percent down 34.13 points, or 0.6%, to 5,864.48.
The dollar index fell 0.1%
The U.S. 10-year note yield fell near 2.333 percent, after hitting 2.38 percent earlier in the session.
Data released on private payrolls rose by 263,000 last month, well above a consensus estimate of 185,000.

Markets in Asia and Europe

Markets in Asia closed higher

The European Stocks SXXP closed up +0.02 percent

Oil Futures in electronic trading fell 0.4 percent at $50.84 a barrel
Gold gave back some recent gains dipping 0.8 percent at $1,248.50 an ounce .

Investors are looking ahead to the 2 day meeting between Trump and China’s President Xi which will be in Florida, they hope to get some inkling as what the ramifications it will have on the dollar and trade relations.

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