Skip to content Skip to footer
both NASDAQ and S&P drop after a strong start in maarch

NASDAQ Hits a New Record, FTSE Surges to a 20-Month High & Oil Prices React to Biden’s Push for Production Increase

NASDAQ records new high prior to FOMC meeting

The tech-centric NASDAQ was trading at record highs to start the week, as markets geared up for a highly anticipated FOMC meeting on Wednesday.

Many expect this latest Federal Reserve meeting will signal the first policy change since the start of the pandemic last March.

Although it is expected that interest rates will remain unchanged, markets believe the Fed may move to taper its bond buying programme.

💡 How does the Fed affect the economy?
Through the FOMC, the Fed uses the federal funds target rate as a means to influence economic growth.
To stimulate the economy, the Fed lowers the target rate. If interest rates are low, the presumption is that consumers can borrow more and, consequently, spend more. 

The meeting will come ahead of Friday’s Non-farm payrolls, which are expected to see 450,000 jobs added to the U.S. economy.

As of writing, the NASDAQ was trading 0.41% higher, with GBPUSD falling to a 4-week low of 1.3641 in the process.

FTSE 100 hits 20-month high ahead of BOE rate decision

In the United Kingdom, the FTSE 100 hit its highest level since the start of the pandemic, as investors prepared for Thursday’s Bank of England meeting.

The benchmark FTSE 100 closed Monday’s session 0.71% higher, hitting an intraday high of 7,302.79 in the process.

This was the highest point the index has traded since February 2020 and comes as the Bank of England is expected to increase interest rates later this week.

💡 Inflation… Still an issue
Inflation in Britain looks set to rise to 5% – more than double the BoE’s 2% target – despite a slowdown in the economy’s recovery from last year’s slump, and BoE Governor Andrew Bailey has talked of the need to act to contain inflation expectations.

Monday’s move also comes as Britain and France argued overfishing territory in a Brexit related dispute.

In response to increased tensions, Foreign Secretary Liz Truss stated that, “The French have made completely unreasonable threats, including to the Channel Islands and to our fishing industry, and they need to withdraw those threats or else we will use the mechanisms of our trade agreement with the EU to take action”.

Oil prices rise, as Biden pushes for production increase

Oil prices were higher during Monday’s session, as it is expected that OPEC will maintain output levels, despite pressure from U.S president Biden to increase production.

During the G20 summit in Rome, a senior member of Biden’s administration stated that, “We have to be able to talk privately with partners to think about what tools we have available to us to deal with this in the event that OPEC-plus doesn’t step up and increase production”.

💡 Are fossil fuels essential to economic growth?
Fossil fuels are essential, not luxuries that can be shunted aside. The U.S. Energy Information Administration (EIA) reports that oil, gas and coal account for 80 percent of the country’s energy supply, and will continue to do so far into the future. Renewable energy contributes only marginally. Wind and solar, for example, meet a shade over 3 percent of the country’s energy needs.

Fossil fuels also are critical to advancing the well-being of millions of people in developing countries where electricity, potable water and sanitation remain the most needed basic services.

Despite this, members of the Organization of the Petroleum Exporting Countries and allies which include Russia, look set to vote on maintaining output this coming week.

As of writing this, WTI crude was trading at an intraday high of $85.12.

“Do not anticipate and move without market confirmation – being a little late in your trade is your insurance that you are right or wrong.”

– Jesse Livermore

Eliman Dambell

Senior Market Analyst


Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
Headquarters: 5th Floor Anderson Square, 64 Shedden Road, Georgetown, Grand Cayman, Cayman Islands KY1-1002, BWI.

Tradeview Asia Ltd.

Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.

Tradeview Europe Ltd.

Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.

Tradeview Financial Markets S.A.C Global

Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.