Mounting expectation that he Federal Reserve may not be in a position to hike interest rates at all during 2019 owing to the deteriorating global economic outlook has lent fresh support to US index futures overnight. There’s also optimism over progress being seen in the US-China trade talks which are ongoing in Beijing right now, with the involvement of President Xi’s most senior aide helping lend a degree of support, too. That said, the US arguably remains on the back foot here with stock market volatility and domestic political issues having the potential to give China the upper hand. Any resolution would have the ability to bolster US equities, but the accompanying concessions need to be closely monitored.
Economic data is thin on the ground for the day ahead, although US consumer borrowing numbers due shortly before the market close could prove telling. The increasingly dovish tone from the Fed supports the idea that a notable decrease will be seen here, although anything coming in much below the predicted $16billion could heighten concerns that the US is about to tip into recession sooner than some may hope.
Ahead of the open we’re calling the DOW up 149 at 23680 and the S&P up 15 a 2565.
The information provided here has been produced by third parties and does not reflect the opinion of AxiTrader. AxiTrader has reproduced the information without alteration or verification and does not represent that this material is accurate, current, or complete and it should not be relied upon as such. The Information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any particular trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.
Investors continue to grapple with inflation concerns; Surprise API oil build comes at a critical juncture; Even the hard-to-love EUR is trading higher