Morgans AM: Tuesday 20 March 2019

Morgans Financial Limited

US markets little changed ahead of the latest Federal Reserve monetary policy decision and as investors digested the latest US-China trade headlines - Dow down -27-points or -0.10% and snapping a four session winning streak. The index unwound an earlier rally of almost 200-points. Apple Inc was a key drag on the index, down -0.8%. The broader S&P500 ended flatafter gaining as much as +0.7% earlier in the session, NASDAQ inched +0.16% higher. Equity markets came under pressure after Bloomberg News reported that US officials are worried China may be pushing back against US demands in the countries’ ongoing trade talks. The report also said Chinese negotiators are worried they have not received assurances that tariffs imposed on Chinese goods would be lifted once a deal is struck. However, a separate report from The Wall Street Journal said that trade talks between the US and China will resume next week. The Federal Reserve concludes their two day monetary policy meeting tomorrow morning AEDT and is expected to leave key interest rates unchanged when they announce their decision at 5am AEDT.. However, market participants will focus on remarks by Fed Chairman Jerome Powell at his news conference and policy makers’ forecasts of future rate moves.