简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:Stock markets are mostly flat before the Fed meets. Traders may "need to buckle up tightly and prepare for a potentially wild ride," said an analyst.
Markets were flat on Wednesday as they waited to see if the Federal Reserve would signal its willingness to cut interest rates during its monthly policy update later in the day.
Stocks jumped on Tuesday after Europe's central bank indicated it would cut interest rates and buy up assets to hit inflation targets if economic conditions don't improve.
President Donald Trump accused the bank of manipulating the euro, but raised the prospect of an end to the US-China trade war by tweeting he would meet Chinese President Xi Jinping at the G-20 summit later this month.
View Markets Insider's homepage for more stories.
Stock traders held their breath on Wednesday, keeping markets mostly flat in Europe and the US, as they waited to see if the Federal Reserve would signal its willingness to cut interest rates during its monthly policy update later in the day.
“It's hard to recall a time we headed into an FOMC meeting with so much at stake and with so much uncertainty about what might be agreed and what the guidance for the rest of the year will look like,” said Neil Wilson, chief market analyst for Markets.com.
Stocks soared on Tuesday after the European Central Bank indicated it would cut interest rates and buy up assets to hit inflation targets if economic conditions don't improve. President Donald Trump accused ECB President Mario Draghi of unfairly manipulating the euro with his rhetoric.
However, Trump calmed markets by tweeting that he would meet Chinese President Xi Jinping at the G-20 summit later this month, raising hopes that the pair will strike a deal that avoids further escalation in the US-China trade war.
Now, all eyes are on the Fed.
“There is an air of euphoria and excitement in financial markets that the Federal Reserve will begin preparing investors for lower interest rates in the United States over the second half of the year and potentially into 2020,” said Jameel Ahmad, global head of currency strategy and market research at FXTM.
“But what if Federal Reserve Chair Jerome Powell spoils the party for investors? It's moments like these where investors can suddenly need to buckle up tightly and prepare for a potentially wild ride.”
Here's the market roundup as of 9.18 a.m. (4.18 a.m. EST):
European equities dipped in morning trading with Germany's DAX down 0.1%, the Euro Stoxx 50 down 0.2%, and Britain's FTSE 100 down 0.3%.
US markets are set for a flat open. Futures underlying the Dow Jones Industrial Average, S&P 500, and Nasdaq were almost unmoved.
Crude oil prices inched upward with West Texas Intermediate crude up 0.3% at $54.30, and Brent crude up 0.4% at $62.40.
Asian stocks jumped on the promise of European stimulus and a US-China trade deal. The Shanghai Composite rose 1%, the SZSE Component climbed 1.4%, Japan's Nikkei leapt 1.8%, and Hong Kong's Hang Seng surged 2.5%.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
The latest data for the U.S. ISM Manufacturing PMI, released on August 1, 2024, shows a decline to 46.8, down from 48.5 in June. This marks the sixth consecutive month of contraction (a reading below 50) and remains well below the historical average of 52.88. On July, the Bank of Canada (BoC) announced a 25-basis-point cut in its benchmark interest rate, reducing it to 4.5%. This was the second consecutive rate cut, following a similar move in June. The latest ADP Nonfarm Employment Change for..
The U.S Producer Price Index (PPI) for June showed a month-over-month increase of 0.2%, which was slightly above market expectations of 0.1%. The Reserve Bank of New Zealand (RBNZ) recently kept its Official Cash Rate (OCR) unchanged at 5.50% during its last meeting on July 2024, which was consistent with market expectations. As of June 2024, the U.S. Consumer Price Index (CPI) showed a modest increase of 3.0% year-over-year, weaker than market expectation and previous reading of 3.1% and 3.3%..
The latest S&P Global US Manufacturing PMI for June 2024 has been revised to 51.6, slightly lower than the expectation of 51.7 but up from 51.3 in May. In its most recent decision in June, the Bank of Canada (BoC) reduced its key interest rate by 25 basis points, lowering it from 5% to 4.75% in response to easing inflation indicators. In the first quarter of 2024, the US economy expanded at an annualized rate of 1.4%, slightly surpassing market expectations of 1.3%. This growth marked a...
This week's major events include Powell's cautious outlook on rate cuts, TSMC's gains amid Samsung's strike, and Putin's diplomatic efforts. In China, the PBOC prepares bond interventions, while Korea's Hahn & Co. raises $3.4 billion. Deflationary pressures persist in China. US and European legal and regulatory changes impact market sentiment. Key data releases are NFIB Small Business Optimism, Core CPI, PPI, and Michigan Consumer Sentiment for the USA.