The new monetary policy of the Federal Reserve | 05 November 2021

#Exxon:

ExxonMobil delivered excellent third-quarter results, growing earnings and cash flow, reducing debt, and maintaining strong reliability and safety performance. Earnings for the quarter were $6.8 billion. Year-to-date, earnings surpassed $14 billion on the strength of Upstream portfolio and industry-leading Chemical and Downstream businesses. With the backdrop of a rapidly recovering global economy, all three of core businesses delivered positive earnings with tight cost control and improved mix. Given the improved results, management raised the dividend, resulting in 39 consecutive years of annual dividend growth.

Trading recommendation: Buy 63.54 and take profit 65.20.

#SP500:

Good and bad news for the U.S. stock market. Fed policymakers are also expected to announce plans to begin tapering the central bank's $120 billion in monthly purchases of Treasuries and mortgage-backed securities at the end of their two-day meeting this week. Reducing the surplus of dollar liquidity in the financial system will have a negative impact on the capitalization of the stock market. The U.S. Treasury Department is expected to reduce the size of its upcoming auctions when it announces its funding plan for the coming quarter, the first step in lowering debt supply as the federal government moves past its emergency-level response to the coronavirus pandemic. The move, which is well anticipated on Wall Street, will likely total an $800 billion cut in nominal auction sizes in the 2022 fiscal year compared with the 2021 fiscal year. This is a positive signal for the stock market.

Trading recommendation: range 4560 - 4655.

XAUUSD:

Fed policymakers are also expected to announce plans to begin tapering the central bank's $120 billion in monthly purchases of Treasuries and mortgage-backed securities at the end of their two-day meeting this week. Data showing a gain in employment costs and consumer inflation for September fanned worries that the Fed could take aggressive policy action to combat the surge in prices. The U.S. employment cost index, the broadest measure of labor costs, grew the most since 2001 as company’s boosted wages and benefits amid a severe worker shortage. The index surged 1.3% last quarter after rising 0.7% in the April-June period. This is a negative signal for gold.

Trading recommendation: sell 1799.50 and take profit 1745.30.