The U.S. stock market declined on Tuesday due the announcement of a possible interest rate change

On Tuesday, Janet Yellen, the newly elected Treasury Secretary and former Fed chief, unexpectedly announced about the possible interest rate hike in order to avoid the overheating of the economy. Taking into account the strategy of many investors "Sell in May and go away", the major U.S. indices reacted with a sharp decline, but slightly recovered their positions by the end of the session.

European stock markets also declined on Tuesday amid a sell-off in technology stocks. British FTSE fell by 0.67% and German DAX lost -2.49%.

Oil prices continue to show the upward trend. Today, the news on Сrude Oil Inventories are expected to be announced, so the volatility will be high.

The holidays in Japan, China and South Korea helped "soften" the movement in the Asian market, and, as a result, the broadest MSCI Asia-Pacific stock index remained at the same level.

PayPal, PepsiCo, Uber, Danaher Corp., Unilever, Philip Morris, Booking Holdings and General Motors are reporting for Q1 2021 today.

Main market quotes:

S&P 500 (F) 4,192.66 +11.49 (+0.27%)

Dow Jones 34,113.23 +238.38 (+0.70%)

DAX 15,236.47 +100.56 (+0.66%)

FTSE 100 6,969.81 0 (0%)

USD Index 90.96 -0.33 (-0.33%)

Important events:
  • – RBNZ Financial Stability Report (m/m) at 00:00 (GMT+3);
  • – New Zealand Employment Change (m/m) at 01:45 (GMT+3);
  • – New Zealand Unemployment Rate (m/m) at 01:45 (GMT+3);
  • – New Zealand Governor Adrian Orr Speaks at 02:00 (GMT+3);
  • – US ADP Non-Farm Employment Change (m/m) at 15:15 (GMT+3);
  • – US ISM Services PMI (m/m) at 17:00 (GMT+3);
  • – US Crude Oil Reserves at 17:30 (GMT+3).

by Justforex, 2021.05.05

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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