[ad_1]
© Reuters.
Investing.com – Here are the top five things you should know about the financial markets on Wednesday, June 5th:
1. Concerns about growth remain in the foreground
The International Monetary Fund. The decision, which comes just two months earlier, raised its forecast to 6.3%, based on the growing uncertainty surrounding the Sino-US trade dispute. This follows the World Bank on Tuesday, which lowered its global growth forecast for 2019 to only 2.6 percent from an estimate of 2.9 percent in January. The World Bank has also lowered its forecast for 2020 from 3.6% to 2.6%.
The IMF will release its annual report on the US economy on Thursday.
, according to data released Wednesday, under the pressure of a fragile real estate market and the reduction of Chinese demand for commodities. The Australian central bank on Tuesday lowered its key rate to a record high.
Read more: 2 safe stocks that can withstand the recession better than most – Haris Anwar
2. Shares reduce their hopes for rate reduction
Global equities skyrocketed on Wednesday, after a wave of relief after Federal Reserve Chairman Jerome Powell suggested the Fed could soften its policy to support the economy.
Powell promised to do what was "appropriate" in response to any impact of trade on the economy. Investors have interpreted this comment as an opening for rate cuts, a gradual shift from a commitment to "patience" in the face of policy changes.
The more than 500 points rise on Tuesday, its second best session of the year and the US futures have heralded a continuation of the rally on Wednesday. gained 139 points, or 0.6%, at 5:39 am ET (9:39 GMT), up 16 points, or 0.6%, while trade was up 56 points, or 0.8%.
Investors will have a new contribution from the Fed on Wednesday. The vice president will open the second day of a Chicago Fed conference, before several appearances from other decision makers.
Elsewhere, after Wall Street, Japan rose 1.8%. However, growth concerns have put pressure on China due to current trade tensions with the United States, and have been partially closed.
as advanced.
3. ISM Services PMI to stay at 2017 lows
Wednesday's focus on the US economic calendar will be the Institute of Supply Management's reading of the service sector activity for the month of May at 10:00 (ET) (14:00 GMT). The should remain unchanged at 55.5 April, its lowest since August 2017.
While reading would remain above 50, the dividing line between expansion and contraction, analysts see the drop after a 13-month high last September as a sign of a slowdown in the economy.
Over the course of the night, service PMIs were weaker than expected, but they exceeded expectations.
4. Oil plunges deeper into the bear market with US stocks on hold
Wednesday after the surprise construction of crude oil stocks in the United States.
The American Petroleum Institute announced Tuesday night the construction of 3.5 million barrels last week. Analysts expect government official data at 10:30 (14:30 GMT) to indicate a draw of 0.8 million barrels.
lost 62 cents, or 1.2%, to 52.86 USD around 5:40 (ET) (9:40 GMT), while trading fell 58 cents, or 0.9%, to 61.39 USD.
Crude oil has accumulated losses of more than 20% from April's peaks of Tuesday, defining a bear market for fear of a slowing global economy requiring less oil.
5. Companies are preparing for the middle of the Sino-US business niche
Skyworks Solutions (NASDAQ 🙂 became the latest chip maker to fall victim to the growing trade war between the United States and China, reducing its quarterly outlook after the market closed on Tuesday citing the fact that it could not more deliver products to Huawei.
On the other hand, Chinese companies would be scrambling to seek tariff waivers for imported US products. The Chinese Ministry of Finance said it could grant exemptions to products such as beef, pork, soybeans or coal.
Business movements are essential to the manufacture of many advanced technologies. The US Department of Commerce has promised to take "unprecedented steps" to ensure that US companies are not cut off from supply.
[ad_2]
Source link