Global Markets Are Mixed, FOMC Decision At Hand, U.S. Housing Data Gives Big Surprise

Global markets are mixed while traders wait on the latest FOMC rate decision. Stronger than expected housing starts and building permits data does not bode well for the Doves.
Thomas Hughes
tall buildings under construction and cranes in New York City

The U.S. Futures Are Down In Early Trading

The U.S. futures are down in early Wednesday trading while market participants wait on the latest FOMC rate decision. The tech-heavy NASDAQ Composite is in the lead with a loss of -0.25% but the Dow Jones and S&P 500 are close behind. The FOMC is expected to cut rates by 25 bps but the outlook has deteriorated from recent lows. The odds of a single cut at this meeting are a mere 58% showing a massive retreat from the 100% odds priced in just a few weeks ago. Looking out to the end of the year the odds for three more cuts are virtually non-existent, the odds for two more cuts only 40%.

In economic news, today’s Housing Starts and Building Permits data was spectacular. The number of housing starts jumped by 12% month to month and 6% YOY while permits advanced a strong 7.5%. The surge of new building will help fuel an already strong labor economy and lead to higher wages and consumer spending. This data does not support the need for FOMC rate cuts.

In stock news, shares of General Mills are down about -0.60% after reporting better than expected earnings. The company says revenue was a bit weak but EPS was strong due to solid gains in the U.S. Shares of FedEx are down nearly -11.0% after the company reported weak results and poor guidance. Fedex says the slowing global economy is hurting the macro-environment in which it operates. Adobe also reported better than expected results coupled with weak guidance. Shares of that stock are down nearly -3.0%.

EU Markets Are Edging Higher

Indices in the EU are edging higher in early Wednesday trading. The market is hopeful the FOMC will support the U.S. economy but there are risks. The U.S. data is strong and does not support the idea of aggressive rate-cutting despite slowing global macro conditions. The CAC is in the lead at midday with a gain near 0.20%, the DAX and FTSE are close behind.

In economic news, UK CPI came in weaker than expected and at a 3-year low. The news sent the pound lower because it confirms the need for BOE easing. In stock news, shares of Moncler are down -5.0%. The luxury retailer says unrest in Hong Kong is hurting the market. In political news, Jean-Paul Juncker says the UK is on track for a hard-Brexit.

Asian Markets Are Mixed

Asian markets are mixed at the end of the Wednesday trading session. The biggest move was made by the Korean Kospi and still less than 0.50%. the Nikkei, Shanghai and Hang Seng all closed within 0.25% of flat line albeit on differing sides. Traders in the region are watching a number of events with today’s FOMC meeting topping the list. In stock news, AB Inbev is moving forward with a second attempt at spinning off its Asian arm. The company hopes to raise $6.6 billion.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US