News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
More View more
Real Time News
  • 🇮🇹 Government Budget (2020) Actual: -9.5% Previous: -1.6%
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here:
  • 🇮🇹 Full Year GDP Growth (2020) Actual: -8.9% Previous: 0.3%
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 1.88% France 40: 1.65% Germany 30: 1.32% US 500: 1.21% Wall Street: 1.10% View the performance of all markets via
  • Heads Up:🇮🇹 Full Year GDP Growth (2020) due at 11:00 GMT (15min) Previous: 0.3%
  • Heads Up:🇮🇹 Government Budget (2020) due at 11:00 GMT (15min) Previous: -1.6%
  • Fed's Barkin says would be disappointed if we didn't see bond yields rise as the outlook improves - WSJ
  • What are some factors affecting the USD this quarter? Get your free forecast here: #DailyFXGuides
  • 🇮🇹 Inflation Rate YoY Prel (FEB) Actual: 0.6% Previous: 0.4%
  • Thanks as always @JeremyNaylor_IG
Global Stock Prices May Rally Post Fed, Dovish Rate Hike Likely

Global Stock Prices May Rally Post Fed, Dovish Rate Hike Likely

Martin Essex, MSTA, Analyst

Global stock prices, news and analysis:

  • Stock prices are continuing to drop worldwide, with the S&P 500 closing Monday at its lowest level since October 2017.
  • However, the Federal Reserve could provide some relief if it raises US interest rates Wednesday but accompanies its announcement with a dovish outlook.

Dovish Fed may benefit stocks

Global stock prices are continuing to weaken but a bounce is possible later in the week if the Federal Reserve announces a US interest rate increase Wednesday but lowers expectations of a further tightening of monetary policy next year.

The Federal Open Market Committee is set to raise rates by a quarter of a percentage point to the 2.25%-2.50% range but it could well drop its previous references to “further gradual increases” in rates – suggesting a pause next year. In September the central bank forecast another three quarter-point hikes in 2019 but the CME FedWatch tool is currently suggesting a 45% chance of no further rises at all next year.

That should boost Wall Street’s S&P 500 index, which has been falling on signs that global economic growth is slowing.

S&P 500 Price Chart, Daily Timeframe (September 11, 2017 – December 18, 2018)

Latest S&P 500 price chart.

Chart by IG (You can click on it for a larger image)

A truce in the US-China trade war should also help stocks, which perhaps could yet benefit from a so-called Santa Rally, and also lower US stock volatility. The VIX index, known as the markets’ “fear gauge” is currently at its highest level for seven weeks.

CBOE Volatility Index Price Chart, Daily Timeframe (September 10 – December 18, 2018)

Latest VIX price chart.


More to Read:

How to Measure Volatility

Resources to help you trade the forex markets:

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you:

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at or on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.