Wednesday at the market
- Global equities have mingled against the declining US dollar as investors expect a key policy statement on the Federal Reserve at 2:00 PM Eastern Time.
- The dollar fell to a fresh two-year low against a basket of its global counterparts ahead of the Fed’s announcement, while traders were frightened by the collapse of consumer confidence in July and the approaching edge of government stimulus.
- Congressional lawmakers are $ 2 trillion left on their rival coronavirus rescue plans, just days before the $ 18 billion unemployment benefit ends.
- Six U.S. states recorded a record number of coronavirus deaths on Tuesday, raising fears that the recovery could lead to new trade and travel restrictions in the coming weeks, as well as school closures.
- US stock futures suggest that before the start of trading, Wall Street will open more modestly ahead of the profits of Boeing and General Electric.
U.S. stock futures rose on Wednesday as the dollar returned to fresh two-year lows and bond yields continued to fall as traders prepared for a busy session highlighted by bluechip corporate earnings, a key Federal Reserve statement and ongoing stimulus talks in Washington.
Global equities mixed during the one-day auction, with Asian gains offset by a two-and-a-half-week low for the Nikkei 225 in Japan and bumpy markets in Europe, where the euro traded at the two-year dollar and corporate gains were largely disappointing this season. .
In the United States, where a recovery in coronavirus infections that brought record mortality to at least six states this week has led to fears that the recovery in the world̵7;s largest economy is starting to crackle, dollars are trading at two – compared to today’s Federal Reserve policy statement on 14:00 Eastern time is low compared to the basket of its global counterparts.
In fact, the dollar has fallen by about 2.6% since the Fed’s last June meeting, and since the end of the central bank in late March it has been aggressively expanding its balance sheet – which currently stands at $ 7 trillion – to an incredible 8.8%.
No major changes in interest rates or special monetary policy are expected from President Jerome Powell, who will speak to the media at 2.30pm Eastern Time, but the Fed is likely to recognize key risks to the recovery, including a slowdown in recruitment, a collapse in July, and consumer confidence. and the approaching limit of government incentives, of which $ 18 billion is due to expire this week in the form of unemployment payments.
With Congress still planning about $ 2 trillion in plans to rescue an opponent, and businesses in Texas, Florida and California are considering reopening plans due to increased infection rates, there may be a lack of risk appetite before the Fed said the gains, although Boeing profits (BA) – Get an overview and General Electric (give) – Get an overview there may be some early steps in the market before opening the doorbell.
Contracts linked to the Dow Jones average average indicate a modest 33-point gain at the start of the session, while the S&P 500 contracts, which have gained 3.8% so far this month, indicate 4 bumps in the opening bell.
Benchmark yields on 10-year treasury bills held at 0.587% in daily trading, while the dollar index fell by 0.2% to 93.50. Gold, which reached a record high of $ 1,980.57 yesterday, fell to $ 1,958.00 in European trading.
However, European stocks were slightly stronger, even with the euro rising, as the Stoxx 600 gained 0.1% at the start of trading and the British FTSE 100 added 0.4%.
Shares in Asia also turned positive, stimulated by a 2% gain for the Shanghai Composite, which raised the MSCI ex-Japan index from across the region to 0.21% ahead of the end of trading hours.
However, Japan’s Nikkei 225 fell 1.15% to a minimum of two and a half weeks after a series of disappointing bluechip revenues, including Nissan Motor Co., which fell 10.4% after forecasting record annual operating profit and its worst global vehicle. sales for at least ten years.
Global oil markets used the declining US dollar to raise prices in overnight trading, as well as data from the US Petroleum Institute, which showed a decline in domestic oil reserves of 6.8 million barrels for the week ending July 24. The Ministry of Energy will publish official data for Today at 10:30 in the morning.
WTI contracts for delivery in September, the U.S. benchmark, 34 cents higher since Tuesday close in New York and early European trading changed to $ 41.38 a barrel, while Brent contracts for September, the global benchmark, were 42 cents higher. cents higher at $ 43.64 per barrel.