Fed's Dovish Comments likely to drive markets up today

Global markets largely fared cautiously in the early session waiting for US Fed’s rate hike schedule report but sentiments did improved when Apple delivered its market update. As a result Asian markets generally fared well except Nikkei was dragged down by a pharmaceutical giant’s market update, and China’s market was troubled by recent spat of profit warning.

US Federal Reserve Chief Jerome Powell delivering a dovish report. AAP Source: AAP

When US Federal Open Market Committee concluded its 2 days meeting and reported to the market urging them to be “patient” to the rate hike schedule, Dow Jones simply surged 140 points instantly from an already 263 higher level than yesterday’s.

In addition, markets remained hopeful to a positive conclusion of the latest round of US & China trade negotiation.

All these points to a more robust market response today.

In our report yesterday, US capital account maintained a dominant healthy and growing position over its trade deficit. Then it begs the question why US had to start this trade war with China.  Our guest, independent economic analyst and strategist , Dr Po Man Chan, would shed us on this issue.