The Breakfast Briefing: Dow Futures Higher As Investors Anticipate First Fed Rate Cut In A Decade

Ted

FYI: . U.S. stock index futures were higher Wednesday morning, as market participants braced for the outcome of the Federal Reserve’s meeting later in the session.

At around 03:30 a.m. ET, Dow futures rose 70 points, indicating a positive open of more than 66 points. Futures on the S&P and Nasdaq were both slightly higher.

The U.S. central bank is widely expected to cut interest rates for the first time since the financial crisis more than a decade ago. Market expectations point to a quarter-point rate cut.

European stocks edged down after deeper losses in Asia, ahead of a Federal Reserve policy decision later Wednesday when the central bank is expected to cut interest rates.

The Stoxx Europe 600 was down 0.1%, with gains in the construction and oil-and-gas sectors offset by losses in real estate.

Shares of Next PLC, the British clothing company, notched the biggest rise at 7.6% after it raised its forecast for profit and sales.

Asian stocks were rattled after tweets from President Trump on Tuesday dampened expectations for a breakthrough in U.S.-China trade talks. Hong Kong’s Hang Seng was down by 1.3% and the Shanghai Composite Index fell by 0.7%.

In the U.S., the yield on the 10-year Treasurys ticked lower to 2.051% from 2.063% Tuesday. Yields fall when bond prices rise. The WSJ Dollar Index, which measures the currency against a basket of peers, slipped by 0.1%.

On the earnings front, General Electric Co. and Qualcomm Inc. are among the large companies due to report Wednesday.

European data on second-quarter gross domestic product and inflation are also due later Wednesday.

In commodities, global oil benchmark Brent crude was up by 0.6% to $65.03 a barrel, amid continued tensions in the Middle East and expectations of lower interest rates in the U.S. Gold edged up 0.1%.

Regards,
Ted

WSJ:
https://www.wsj.com/articles/global-stocks-slip-ahead-of-fed-decision-11564559429

Bloomberg
https://www.bloomberg.com/news/articles/2019-07-30/asia-stocks-seen-lower-on-trade-spat-ahead-of-fed-markets-wrap

IBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-apple-stock-amd-stock-market-rally-fed-rate-cut/

CNBC:
https://www.cnbc.com/2019/07/31/stock-market-wall-street-poised-for-first-fed-rate-cut-in-a-decade.html

Reuters:
https://uk.reuters.com/article/us-usa-fed/with-fed-sure-to-cut-rates-powell-on-hook-to-flag-next-steps-idUKKCN1UQ0DS

U.K.
https://uk.reuters.com/article/uk-britain-stocks/st-jamess-place-lloyds-pull-ftse-100-lower-next-shines-idUKKCN1UQ0T1

Europe:
https://www.reuters.com/article/europe-stocks/european-shares-steady-after-trade-slide-fed-in-focus-idUSL4N24W2AQ

Asia:
https://www.marketwatch.com/story/asian-markets-fall-in-diminished-hopes-of-us-china-trade-deal-2019-07-30/print

Bonds:
https://www.cnbc.com/2019/07/31/us-bonds-treasury-yields-tick-lower-ahead-of-fed-rate-decision.html

Currencies:
https://www.cnbc.com/2019/07/31/forex-markets-dollar-the-fed-british-pound-in-focus.html

Oil:
https://www.cnbc.com/2019/07/31/oil-markets-us-inventories-the-fed-in-focus.html

Gold:
https://www.cnbc.com/2019/07/31/gold-markets-us-federal-reserve-in-focus.html

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