The Breakfast Briefing: Global Stocks Slip After Fed Signals Caution

Ted

FYI: Global stock markets wavered Thursday as persistent concerns about a slowing world economy dampened sentiment.

European stocks opened slightly lower, with the Stoxx Europe 600 down 0.1% in early morning trade. That followed a mixed session in Asia.

On Wall Street, futures pointed to broadly flat openings for the S&P 500 and the Dow Jones Industrial Average.

Minutes of the Federal Reserve’s March meeting released Wednesday suggested the central bank has set a high bar to raise rates again, because of greater risks to the U.S. economy from a global growth slowdown and after a muted inflation reading took more officials by surprise.

European Central Bank President Mario Draghi said Wednesday that Europe’s economic slowdown would continue this year.

Earlier this week, the International Monetary Fund cut its forecasts for world economic growth in 2019 to 3.3%, down from 3.5% in January and 3.7% in October.

The WSJ Dollar Index, which tracks the dollar against a basket of 16 currencies, was broadly flat. The 10-year U.S. Treasury yield was unchanged at 2.479%. Yields move inversely to prices.

The British pound was broadly flat Thursday after European Union leaders agreed to postpone Brexit until Oct. 31 to allow British Prime Minister Theresa May more time to try to get the U.K.’s Parliament to approve the country’s divorce deal.

In Asia, Hong Kong’s Hang Seng fell 0.7% while Japan’s Nikkei was up 0.1%.

In Commodities, Brent crude, the global oil benchmark, was down 0.5%, while gold prices fell 0.3%.
Regards,
Ted

WSJ:
https://www.wsj.com/articles/global-stocks-slip-after-fed-signals-caution-11554968346

Bloomberg:
https://www.bloomberg.com/news/articles/2019-04-10/asia-stocks-set-for-mixed-start-bonds-climb-markets-wrap?srnd=premium

IBD:
https://www.investors.com/market-trend/stock-market-today/stock-market-futures-stock-market-today-nasdaq-takes-lead/

CNBC:
https://www.cnbc.com/2019/04/11/stock-market-us-futures-fairly-flat-as-investors-digest-fed-minutes.html

U.K.:
https://uk.reuters.com/article/uk-britain-stocks/ftse-100-slips-on-global-slowdown-fears-brexit-delay-cushions-fall-idUKKCN1RN0UM

Europe:
https://www.reuters.com/article/europe-stocks/european-shares-dip-as-growth-fears-weigh-lvmh-sodexo-buoy-france-idUSL3N21T1U5

Asia:
https://www.marketwatch.com/story/australia-which-called-new-elections-thursday-leads-asia-markets-lower-in-early-trading-2019-04-10/print

Bonds:
https://www.cnbc.com/2019/04/10/bonds-treasury-yields-edge-lower-ahead-of-fed-minutes.html

Currencies:
https://www.cnbc.com/2019/04/11/forex-market-fed-meeting-minutes-brexit-extension-in-focus.html

Oil:
https://www.cnbc.com/2019/04/11/oil-market-us-crude-stockpiles-opec-supply-cuts-in-focus.html

Gold:
https://www.cnbc.com/2019/04/11/gold-market-dollar-moves-dovish-fed-and-ecb-in-focus.html

Current Futures:
https://finviz.com/futures.ashx