FED approves unlimited QE; markets rejoice – Monday review, March 23

FED approves unlimited QE; markets rejoice – Monday review, March 23

The announcement made by the Fed managed to bring hope to the stock market. The Federal Reserve took some unprecedented decisions to help the economy. The statement made Monday is the most aggressive the Fed has made to date.

Fed announced buying as many Treasury Bonds and various assets as it is needed to save the U.S. markets. Instead of capping the QE program at some threshold, it's for the first time in history when the Fed decided to buy unlimited amounts of ETFs investment-grade securities. A $300 Billion program for helping the credit flow, employers, consumers, and business has also been announced.

USA30 went up 3.9%, but lost steam over the day, closing at the lowest level since November 9, 2016, the day of President Donald Trump's election.

USA500 and TECH100 rose nearly 4%.

The Fed's decision has also influenced the Asian markets. JAPAN225 rose 6.7%, Shanghai Industrial rose 2.2%. HongKong45 went up 4.4%. Australia200 went up 4.1%.

As far as the energy markets are concerned, Oil gained 5% to $24.51 per barrel. Brent Oil added $1.28 to $28.16 per barrel.

The USD/JPY declined to 110.43.

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Sources: marketwatch.com, investing.com

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The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.