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Brendan McDermid / Reuters
- Global stocks fell on Tuesday as investors prepared for the US Federal Reserve to announce that it could temper or eliminate the expected cuts in interest rates this month.
- Last week's non-farm salary data from Stellar highlighted a robust US labor market, which "could prompt the central bank to use a smaller knife to reduce interest rates," said Neil Wilson. Chief Market Analyst for Markets.com.
- "This is the key period that will see the Fed crystallize market expectations for a cut later this month, or gently bring them back to a more neutral position," he added. .
- See the Markets Insider home page for more stories.
Global stocks fell on Tuesday as investors prepared for the US Federal Reserve to announce that it could temper or eliminate the expected cuts in interest rates this month. German stocks fell after the chemical chemicals giant BASF announced profits, which weighed on investor sentiment.
Traders will listen carefully to Fed Chairman Jerome Powell's speech to the Boston Fed on Tuesday looking for signs that the central bank is coming back from "acting right" to "patient" ".
"It would be disturbing for the Fed to be as bearish as it was at its last meeting – implying two rate cuts this year – and doing nothing now," said Konstantinos Anthis, Research Manager at ADSS. "Our central scenario calls for a one-time reduction in the number of people in July, and if so, Mr. Powell would likely use his testimony to inform market participants so as to avoid an explosive reaction when they would pull the trigger. "
The non-farm payroll data released last week, according to which 224,000 jobs were created by the US economy, revealed a robust labor market that "could prompt the central bank to use a smaller knife. to reduce interest rates, "said Neil Wilson, general manager market analyst for Markets.com.
"This is the key period that will see the Fed crystallize market expectations for a cut later this month, or gently bring them back to a more neutral position," he added. .
Here is the round of the market horizon at 8:00 am ET:
- European shares have fallen. From Germany DAX dipped by 1.1%, driven by a 5% drop BASF shares after the chemical giant warned that the US-China trade war would weigh on its profits.
- the Euro Stoxx 50 was down 0.5%, and Britain FTSE 100 was down 0.1%.
- Asian indices were generally lower. the Composite of Shanghai was down 0.2%, and Hong Kong Hang Seng was down 0.9%, while Japan Nikkei was up 0.1%.
- US stocks should open lower. Futures underlying the Dow Jones Industrial Average , the S & P 500, and the Nasdaq futures were down 0.4%.
- Oil prices have risen with West Texas Intermediate gross increase of 0.5% to approximately $ 58 and Brent gross increase of 0.6% to approximately $ 64.50.
- Bitcoin climbed 3% to about $ 12,310.
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