FYI: Global stocks slipped and the dollar edged higher Wednesday after comments from Federal Reserve officials damped hopes the central bank would move quickly to ease monetary policy.
In Europe, the Stoxx Europe 600 fell 0.3% in the opening minutes of trade, putting it on course for a fourth consecutive day of losses. Asian indexes were mixed, as investors have grown more pessimistic this week about U.S. monetary policy and the trade spat between the U.S. and China.
In comments Tuesday, Fed Chairman Jerome Powelldefended the central bank’s independence, pushing back against signals from financial markets and calls from President Trump and to lower interest rates. Mr. Powell said officials would ease monetary policy only if data showed a sustained downward trend in the U.S. economy.
The yield on the 10-year U.S. Treasury note continued to hover around 2%, having fallen below that level for the first time since 2016 last week. Bond yields fall as prices rise.
In Europe, data from a market research group suggested German consumers had grown more pessimistic about the future of their economy and in particular about their futures incomes. Most European regional indexes were lower.
Asian markets most were slightly lower or close to flat, also reflecting unease that a meeting between Mr. Trump and China’s President Xi Jinping at the G-20 summit in Japan this week might not produce a breakthrough on the two nation’s long-running trade dispute. Japan’s Nikkei saw the largest decline, falling 0.7%.
Futures for the S&P 500 and Dow Jones Industrial Average were flat, while Nasdaq-100 futures were 0.1% higher. The contracts don’t necessarily predict moves after the opening bell.
In commodities, oil markets rallied as the rhetoric between Iran and the U.S. grew more confrontational and after data from an industry group late Tuesday showed U.S. crude stockpiles fell by more than expected. Global benchmark Brent on Wednesday jumped 1.6% to $65.31, while U.S. benchmark climbed 2.1% to $59.03 a barrel.
Regards,
Ted
WSJ:
https://www.wsj.com/articles/global-stocks-follow-wall-street-lower-as-fed-signals-independence-11561536665Bloomberg:
https://www.bloomberg.com/news/articles/2019-06-25/asia-stocks-to-slip-as-yields-drop-on-growth-worry-markets-wrapIBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-micron-earnings-offer-hope-micron-stock-market-rally/CNBC:
https://www.cnbc.com/2019/06/26/stock-market-traders-digest-feds-powell-comments.htmlReuters:
https://www.reuters.com/article/us-usa-trade-china/u-s-aims-to-restart-china-trade-talks-will-not-accept-conditions-on-tariff-use-idUSKCN1TQ2EXU.K.
https://uk.reuters.com/article/uk-britain-stocks/ftse-100-retreats-after-fed-plays-down-rate-cut-hopes-idUKKCN1TR0QGEurope:
https://www.reuters.com/article/us-europe-stocks/european-stocks-fall-after-fed-cools-mood-idUSKCN1TR0ONAsia:
https://www.cnbc.com/2019/06/26/asia-markets-the-fed-us-china-trade-currencies-in-focus.htmlBonds:
https://www.cnbc.com/2019/06/26/bond-market-treasury-yields-focus-on-jerome-powell-comments.htmlCurrencies:
https://www.cnbc.com/2019/06/26/forex-market-fed-rate-cut-bets-us-iran-tensions-in-focus.htmlOil:
https://www.cnbc.com/2019/06/26/oil-market-us-iran-tensions-us-crude-stockpiles-in-focus.htmlGold:
https://www.cnbc.com/2019/06/26/gold-market-fed-rate-cut-bets-us-china-trade-war-in-focus.htmlCuirrent Futures:
https://finviz.com/futures.ashx
