Mar 29, 2016, (9:21AM EDT)
As discussed in our earlier post, European markets and U.S. stock futures are trading with high volatility as reports from the U.S. economy start pouring in and markets get ready for the fed Chair Janet Yellen’s speech in New York.
There have been talks about a rate hike from the Fed in April and U.S. markets might remain subdued before Yellen speech later today.
After that, the trend in U.S. markets will depend if the Fed Chair talks about any rate hike. The usual pattern of such speeches has been, talk about rate hike but also hint at deteriorating global economic conditions. The sum total is confusion and market volatility.
Expect a same trading pattern in U.S. markets today. Unless, Janet Yellen makes some clear comment about a rate hike or delay in rate hike. In such a scenario, you know what markets will do; jump up if the Fed Chair drops negative hint about rate increase, or slump if there are indications about a rate increase.
Wait and watch markets in early hours the trade with the trend, which could remain range bound in the first hour or so.
Good luck, enjoy the session!