S&P 500 and Dow exit correction territory

S&P 500 and Dow exited correction territory last week against the background of rebounding global markets buoyed by Fed chair Powell’s comments the Federal Reserve has the ability to be patient on monetary policy. The S&P 500 rebounded 2.5% while the ICE US dollar index lost 0.5%.

All five major stock indexes ended sharply higher. Nikkei and Heng Sang led the gains: they rallied 4.1%. Out of six major currency pairs only the euro and Swiss franc reversed previous week’s dynamics against the US dollar while the range of fluctuations narrowed. The Canadian dollar remained the leader in terms of percentage change: it gained 1.6% against the US dollar.

Quarterly results as US companies start releasing corporate reports this week will be a major factor in pricing further advances for US stock market. Reports by world’s biggest banks including Citigroup, JPMorgan, Bank of America, Wells Fargo and Goldman Sachs will open the earnings season. And UK parliament’s vote on the Brexit deal on Tuesday will set the direction for Pound movements this week.