Shares treading water ahead of European CPI, Fed meeting

US shares closed flat overnight, with each of the three major indices managing to record a small gain. It was a quiet night without any major news or announcements, prices did initially trade lower but they recovered to finish slightly higher. Investors seem a bit nervous ahead of the Federal Reserve meeting on Wednesday night, though the Fed is very unlikely to raise rates at this meeting. Instead, investors will be looking for any signal that interest rates are at their peak. Should the Fed signal more rate rises in future, that will likely be seen as a sell signal. Tonight we will also see European CPI growth, which could trigger some movement in US shares. Regardless, markets seem to be awaiting the news of the next few days before deciding on their next move.

Six of the eleven sector groups of the SP500 closed higher overnight, with Energy stocks the best performers. Discretionary stocks saw the most selling overnight, followed by Real Estate stocks.

Technically, the SP500 held the 4,450 support level again overnight, we now need to see if this level holds before confirming a technical view. Should the index fall from here, it would record three lower peaks and we could consider it to be down trending. Should 4,450 break, we could see a fall back to 4,350.v

US Markets

US shares closed flat overnight, with each of the three major indices managing to record a small gain. It was a quiet night without any major news or announcements, prices did initially trade lower but they recovered to finish slightly higher. Investors seem a bit nervous ahead of the Federal Reserve meeting on Wednesday night, though the Fed is very unlikely to raise rates at this meeting. Instead, investors will be looking for any signal that interest rates are at their peak. Should the Fed signal more rate rises in future, that will likely be seen as a sell signal. Tonight we will also see European CPI growth, which could trigger some movement in US shares. Regardless, markets seem to be awaiting the news of the next few days before deciding on their next move.

Six of the eleven sector groups of the SP500 closed higher overnight, with Energy stocks the best performers. Discretionary stocks saw the most selling overnight, followed by Real Estate stocks.

Technically, the SP500 held the 4,450 support level again overnight, we now need to see if this level holds before confirming a technical view. Should the index fall from here, it would record three lower peaks and we could consider it to be down trending. Should 4,450 break, we could see a fall back to 4,350.

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