The week ahead is setting up to be very active and potentially market-moving. The latest round of $200 billion tariffs on Chinese goods takes effect at the same time markets will be dealing with a resurgence in oil prices. Oil is trading near $72/barrel, up from only $65 a month ago. The uncertainty from global trade and potential for a surge in energy prices could have a big impact on market psychology.
This week the Federal Reserve (Fed) will announce its decision on interest rates, which is widely expected to be an increase. Markets will be looking for the likelihood of a rate increase at the December meeting and hoping to get a fresh perspective on the Fed’s thinking about 2019.
Interest rates have been moving steadily higher, albeit at a slow pace, at the long end of the yield curve. Look for this trend to continue for the next few weeks as technicals and fundamentals will likely push the 10-year Treasury to the 3.25% level.
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