Stocks are a pretty mixed, directionless bag right now as the market awaits Fed chair Jay Powell’s testimony in Washington. Wall Street was split – SPX nudged a touch higher, closing about one-tenth of a percent higher close to 2980 having been around 15 points lower earlier in the session. The Dow meanwhile slipped a touch.
Asia broadly stronger overnight but Chinese shares down a touch. European shares are mildly lower as Mr Powell is set to go up the hill. Caution will be the order of the day until markets get what they want from the Fed chair – if they do.
Sterling is still languishing at its lows. Ex the January flash crash we’re down at 2-year lows for the pound, with the threat of a no-deal Brexit looming over sterling. GBPUSD was last at 1.2450, a shade off yesterday’s trough but still looking weak.
Dollar strength is returning as traders dialled back expectations for a deeper, aggressive round of cuts by the Fed. All eyes on Jay Powell’s testimony later on as well as the minutes from the last Fed meeting. The prospect of the Fed chair nudging market thinking slightly away from cuts should keep traders on their toes. Euro steady at 1.120 – look for a move below 1.1180 to push the cross back to the lows.
Oil is firming up after yesterday’s surprisingly large drawdown on inventories. API data showed stockpiles fell by 8.1m barrels last week, versus a c3m draw expected. The data could offer renewed support for oil prices. Meanwhile speculative long positions are growing again. Brent was last a shade below $65. Patterns look a bit bearish and flaggy though. Price action for now looks bound between the $62.50-$65.50 levels, the 50% and 38.2% Fib levels of the big rally through 2019.
Data overnight – China inflation came in as expected at 2.7%, whilst PPI was weaker, coming in flat in June from the month before.
US Election, Recession, Brexit: What’s in store for markets in 2020 H2?Read More
US Election 2020: What happens to the US dollar with a Democrat clean sweep?Read More
Stocks steady as pubs prepare to reopenRead More
Risk assets rally on bumper US NFP jobs reportRead More
Blonde Money US Nonfarm Payrolls PreviewRead More
Stocks go up, cases go up, US jobs harder to callRead More
US oil inventories preview: EIA data to confirm the biggest draw this year?Read More
Stocks steady after Q2 boom, gold breaks higher, economic data uncertainRead More
Short sellers triumph as Wirecard collapses – but who’s next?Read More
Markets.com is the state-of-the-art trading platform provided by Markets.com. As part of the TradeTech Group, a constituent of Playtech, a FTSE 250 listed company, at Markets.com we have deep knowledge of the financial markets and an incredible range of resources to continually raise the bar in the world of financial trading.
Markets.com, operated by Safecap Investments Limited (“Safecap”) Regulated by CySEC under License no. 092/08 and FSCA under Licence no. 43906.
Markets.com, operated by TradeTech Markets (BVI) Limited (“TTMBVI”) Regulated by the BVI Financial Services Commission (‘FSC’) under licence no. SIBA/L/14/1067.
Markets.com operated by TradeTech Alpha Limited (“TTA”) Regulated by the Financial Conduct Authority (“FCA”) under licence number 607305.
Markets.com, operated by Tradetech Markets (Australia) Pty Limited (‘TTMAU”) Holds Australian Financial Services Licence no. 424008 and is regulated in the provision of financial services by the Australian Securities and Investments Commission (“ASIC”).
Markets.com, operated by TradeTech Markets (South Africa) (Pty) Limited (“TTMSA”) Regulated by Financial Sector Conduct Authority (‘FSCA’) under the licence no. 46860.
Selecting one of these regulators will display the corresponding information across the entire website. If you would like to display information for a different regulator, please select it. For more information click here.