Wall Street found fresh support yesterday off the back of news that both Beijing and Washington were dialling back the latest round of tariffs on some imports, providing a degree of confidence for markets globally. This, combined with talk of the White House easing sanctions against Iran plus anticipation that the European Central Bank will launch significant stimulus measures in today’s policy statement is buoying sentiment although as Wall Street once again closes in on those record highs, the question has to be asked as to just how long the run of optimism will be.
US inflation data due before the opening bell could offer some meaningful insight, as an upbeat figure here would have the potential to reign in expectations over just how aggressively the Federal Reserve will want to cutting interest rates through the remainder of the year. With expectations being for a print of just 1.8% and with oil prices falling too, it seems unlikely that the dovish calls will be scaled back, potentially providing stocks with another shot in the arm.
Ahead of the open, the market is calling the DOW up 5 at 3006 and the S&P up 67 at 27204.
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.
Recommended Content
Editors’ Picks
AUD/USD rises to two-day high ahead of Aussie CPI
The Aussie Dollar recorded back-to-back positive days against the US Dollar and climbed more than 0.59% on Tuesday, as the US April S&P PMIs were weaker than expected. That spurred speculations that the Federal Reserve could put rate cuts back on the table. The AUD/USD trades at 0.6488 as Wednesday’s Asian session begins.
EUR/USD now refocuses on the 200-day SMA
EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.
Gold price cautious despite weaker US Dollar and falling US yields
Gold retreats modestly after failing to sustain gains despite fall in US Treasury yields, weaker US Dollar. XAU/USD struggles to capitalize following release of weaker-than-expected S&P Global PMIs, fueling speculation about potential Fed rate cuts.
Ethereum continues hinting at rally following reduced long liquidations
Ethereum has continued showing signs of a potential rally on Tuesday as most coins in the crypto market are also posting gains. This comes amid speculation of a potential decline following FTX ETH sales and normalizing ETH risk reversals.
Australia CPI Preview: Inflation set to remain above target as hopes of early interest-rate cuts fade
An Australian inflation update takes the spotlight this week ahead of critical United States macroeconomic data. The Australian Bureau of Statistics will release two different inflation gauges on Wednesday.