* Major indexes advance with Nasdaq leading gains
* FOMC meeting results expected 1400 EST/1800 GMT
* Tech leading S&P sector gains with consumer staples rising
least
* Euro STOXX 600 index rallies >2%
* Dollar, bitcoin, crude rise; gold dips
* U.S. 10-Year Treasury yield ~1.78%
Jan 26 - Welcome to the home for real-time coverage of
markets brought to you by Reuters reporters. You can share your
thoughts with us at markets.research@thomsonreuters.com
WALL STREET OPENS HIGHER ON FED DAY (0953 EST/1453 GMT)
Wall Street's major averages are rallying on Wednesday
morning and most of the S&P's 11 major sectors are in the green
with technology leading the charge as bullish
corporate forecasts gave it a boost.
That said, while the bullish start may encourage some
investors, if the intraday volatility of the last few sessions
is any guide, anything could happen, especially in a session
that will be bookmarked by a Federal Reserve statement after the
conclusion of this week's FOMC meeting.
Meanwhile, investors are still keeping a cautious eye on
Russia/ Ukraine tensions after Russia warned on Wednesday that
imposing sanctions on President Vladimir Putin personally would
not hurt him, but would be "politically destructive", after U.S.
President Joe Biden said he would consider such a move if Russia
invaded Ukraine.
However, earnings reports are definitely cheering up
investors with Microsoft Corp gaining 5% after
estimating current-quarter revenue broadly ahead of market
estimates, driven in part by its cloud business and Chipmaker
Texas Instruments Inc is rising 3% as it also gave a
positive outlook based on strong chip demand.
Here is your early trading snapshot:
(Sinéad Carew)
*****
S&P 500: ON TRACK FOR BIGGEST JANUARY DROP IN ITS HISTORY
(0900 EST/1400 GMT)
Wednesday's results from the latest FOMC Meeting may be
taking on added significance given that the S&P 500 ended
Tuesday on track for its worst January performance in its
history.
Indeed, the SPX is down 8.597% for the month, putting in on
track for a bigger January slide than 2009's 8.566% tumble,
which stands as the worst start to a year for the benchmark
index using Refinitiv data back to early 1928.
Meanwhile, based on the daily RSI, the S&P 500 ended Tuesday
at its most oversold level since late-February 2020:
It now remains to be seen if this will prove to be a
sufficiently washed out condition. Of note, since late 2018, the
two most oversold readings on a daily basis, in October 2018 and
February 2020, occurred in the early stages of declines. It was
not until the SPX made new lows, coupled with a momentum
convergence, that true bottoms formed.
If the SPX breaks Monday's low at 4,222.62, and the 23.6%
Fibonacci retracement level of the entire March 2020-January
2022 advance, at 4,198.70, it can suggest risk for much more
significant downside. The 38.2% Fibonacci retracement of the
March 2020-January 2022 advance is at 3,815.20.
On strength, the 200-day moving average, which ended Tuesday
around 4,432, presents resistance. The January 10 low, at
4,582.24, also looks to be a significant hurdle.
In the event of sudden upward reactions, traders will be
assessing their structure, character and extent closely. This
especially because, a CBOE Put/Call measure, which can be a
considered a contrarian sentiment indicator, has broken out to
66.6%, or its highest level since May 2020, and a
number of market internal measures have yet to clearly
stabilize.
(Terence Gabriel)
*****
FOR WEDNESDAY'S LIVE MARKETS' POSTS PRIOR TO 0900 EST/1400
GMT - CLICK HERE:
(Terence Gabriel is a Reuters market analyst. The views
expressed are his own)