The Breakfast Briefing: U.S. & Global Stocks Drift In Absence Of New Impetus

Ted

FYI: U.S. stock index futures were lower Tuesday morning.

At around 04:45 a.m. ET, Dow futures fell 21 points, indicating a negative open of more than 26 points. Futures on the S&P and Nasdaq were both seen marginally lower.

Investors continue to closely monitor the long-running dispute between China and the U.S. over trade. China’s ministry of commerce said Monday that the leaders of China and the U.S. spoke over the phone.

Global stocks drifted Tuesday amid mixed signals from the Federal Reserve and negotiators on the U.S.-China trade talks.

Futures linked to the S&P 500 index ticked down less than 0.1%, following a day in which the three benchmark U.S. equity gauges rose to close at records. The pan-continental Stoxx Europe 600 gauge slipped 0.2%.

Fed Chairman Jerome Powell offered no new impetus to markets on Monday evening, when he said the central bank cut interest rates this year in part because officials concluded the economy wasn’t as strong as anticipated. He also reiterated that monetary policy wouldn’t change unless economic conditions shifted materially, and current rate levels were appropriate for supporting the job market and boosting inflation.

Investors also got no new indications of concrete progress in the trade negotiations, though China’s Commerce Ministry reported that Chinese and U.S. officials reached consensus on resolving relevant problems in a phone call on Tuesday. The two sides discussed matters related to their crucial concerns, the ministry said, without elaborating. The Shanghai Composite Index closed almost flat, while Hong Kong’s Hang Seng Index slipped 0.3%.

Over in Europe, Compass Group was among the biggest losers after its shares dropped 5.9% in London trading. The food-service company posted a drop in fiscal 2019 profit.

Later today, there will be a slew of data from the U.S. including the S&P CoreLogic Case-Shiller National Home Price Index reading, offering a view on the changes in the value of residential real estate across 20 markets in the U.S. Data on new home sales, which are expected to show continued growth, and the Conference Board’s consumer confidence index, which is forecast to show an improvement in sentiment, are also due out.

Regards,
Ted

WSJ:
https://www.wsj.com/articles/global-stocks-drift-in-absence-of-new-impetus-11574762851

Bloomberg:
https://www.bloomberg.com/news/articles/2019-11-25/asian-stocks-to-gain-amid-trade-optimism-m-a-markets-wrap?srnd=premium

IBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-stock-market-rally-fear-gauge-hits-new-low-palo-alto-networks-nutanix-ambarella/

CNBC::
https://www.cnbc.com/2019/11/26/dow-futures-point-to-higher-open-as-investors-monitor-us-china-trade.html

Reuters:
https://uk.reuters.com/article/us-global-markets/trade-optimism-lifts-world-stock-markets-idUKKBN1Y002S

U.K.
https://uk.reuters.com/article/uk-britain-stocks/compass-drop-weighs-on-ftse-trade-hopes-soften-blow-idUKKBN1Y00TL

Europe:
https://www.reuters.com/article/us-europe-stocks/european-shares-dip-as-investors-seek-signs-of-trade-deal-progress-idUSKBN1Y00SV

Asia:
https://www.marketwatch.com/story/asian-markets-mixed-on-new-optimism-for-us-china-trade-deal-2019-11-25/print

Bonds:
https://www.cnbc.com/2019/11/26/us-bonds-treasury-yields-in-focus-amid-economic-data-auctions.html

Currencies:
https://www.cnbc.com/2019/11/15/forex-markets-us-china-trade-deal-in-focus.html

Oil:
https://www.cnbc.com/2019/11/26/oil-markets-us-china-trade-deal-in-focus.html

Gold:
https://www.cnbc.com/2019/11/26/gold-markets-us-china-trade-deal-in-focus.html

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