Investing.com – Tuesday, June 18, here are the top five things you should know about financial markets:
1. ECB announces further relaxation after Fed meeting
The President of the European Central Bank has cleared a forum of central bankers in Sintra, Portugal on Tuesday.
He said that if inflation in the euro area does not improve, there should be a further reduction in interest rates or asset purchases.
Draghi's comments come as the US Federal Reserve begins its two-day political meeting on Tuesday morning.
While markets do not expect interest rates to change when the decision is announced on Wednesday, it is likely that lingering worries over the economic fallout from the US-China trade war could prompt the Fed to open the door. at rate cuts later. year.
Read more: – Darrel Delamaide
current price in the probability of a rate reduction in July to more than 80%, with the probability of two further reductions by the end of the year above 50%.
2. The hope of easing the conditions of the central bank stimulates the actions
and US futures have become positive after Draghi has raised hopes that central banks will ease their policy to support the waning global outlook.
The gain of 0.9% at 5:49 am (9:49 GMT), while in the United States, it gained 53 points, or 0.2%, rose by 7 points, or 0.2%, while the exchange gained 36 points, or 0.5%.
Bullish equities did not dampen safe haven demand as investors continued to increase their prices. The 10-year US Treasury yield, which moves in the opposite direction of price, slipped 4 basis points to 2.05%, its lowest level since September 2017.
3. Oil prices fall on the 2nd day before US inventory data
Oil prices have fallen again, weighed down by worries that the trade war between the US and China is weighing on global economic growth and the caution that precedes the weekly stock data.
The weekly report of the American Petroleum Institute is due at 16:30 ET. The reading precedes the official report of the Energy Information Administration. Although the forecast is for a draw of 2.0 million barrels, inventories have been on the rise in both previous reports.
Oil losses were, however, limited by tensions in the Middle East after last week's tanker attacks, as US President Donald Trump confirmed the news last week and sent 1,000 troops to the area.
4. Boeing registers zero new order; confusion over the name change of the 737 MAX
The ramifications of the two fatal accidents Boeing (NYSE 🙂 737 MAX, which founded the model around the world, continued to make headlines.
Boeing has not announced any new orders for any of its aircraft on the first day of the Paris Air Show, while its rival Airbus was registering orders and options for 123 aircraft, according to CNBC.
Boeing chief executive Dennis Muilenburg insisted that the priority of the Paris Air Show would not be to place orders but to restore confidence in its fleet.
By the way, after announcing to Bloomberg that he would be willing to change the name of the 737 MAX, Greg Smith, chief financial officer, told Reuters that she was not working on a name change project.
5. Facebook unveils Libra digital currency project
Facebook (NASDAQ 🙂 Tuesday announced additional details on its Libra digital currency project, which is expected to be operational in the first half of 2020.
The Libra currency – conceived as a network of block chains backed by other assets – will not be owned by Facebook itself. Mark Zuckerberg's company will lead a consortium that will develop it and include payment companies Visa (NYSE :), Stripe and PayPal (NASDAQ 🙂 to help spread acceptance. Other tech companies such as eBay (NASDAQ :), Lyft (NASDAQ :), Uber (NYSE 🙂 and Spotify (NYSE :), would also be on board.
Facebook will look to capitalize on this launch with a new subsidiary called Calibra, a digital wallet designed to store and trade Libra.