U.S. Core Inflation Ticks Higher, FOMC Meeting Underway, Trade Talks Scuttled

Global equities are mixed as traders wait on a very important FOMC decision due out tomorrow afternoon. Oh, and there are a lot of important earnings due out after the close of today’s trading.
Thomas Hughes

Futures Fall As Markets Wait On Fed Decision

The U.S. futures are lower in early Tuesday trading as market participants wait on this months much anticipated FOMC decision. The Fed is largely expected to cut rates by a quarter-point tomorrow afternoon but there is a risk in that hope. Not only is the U.S. still fundamentally economically healthy today’s PCE data does not support cutting. Headline income and spending figures were as expected and came with some downward revision to previous data. The key read within the report is always the inflation data. On the inflation front, headline consumer prices held steady while core-consumer prices ticked up by a tenth.

The NASDAQ Composite is in the lead in early trading with a loss of -0.70%. The tech-heavy index is under added pressure from Apple traders, Apple is expected to report earnings today after the close of trading. The broad-market S&P 500 is runner up with a loss near -0.45% while the Dow Jones Jones Industrials trails with a loss of -0.35%.

In earings news, Under Armour reported this morning and did not please investors. The sportswear company says U.S. sales were weak, the news sent shares down more than -12.0% because the company’s expansion plan is not working. Consumer products company Proctor&Gamble reported strong earnings and revenue sending its shares up in early trading.

EU Markets Tank As The No-Deal Brexit Becomes More Likely

EU markets are broadly lower as earnings and Brexit fears grip the market. On the Brexit front, newly-elected UK PM Boris Johnson says the May Brexit Deal is dead. He’s requested the EU renegotiate and says there will be a no-deal Brexit if they won’t. The British Pound fell to a fresh 28-month low in response.

The UK FTSE surprisingly fell the least, shedding only -0.15% in early trading. The German DAX is more than -2.0% lower at midday, the French CAC nearly -1.50%. Shares of energy giant Centrica are near the bottom of the rankings. The company says it produced a net-loss this quarter and that its CEO will be stepping down. British Petroleum reported EPS and revenue above expectations and sent its shares up nearly 3.0% while Lufthansa shares fell more than -5.0%.

Asia Edges Higher, Trade And FOMC In Focus

Asian markets are broadly higher after the Tuesday session. Gains in the region run from 0.25% to 0.45% for the Korean Kospi. Traders are hopeful the FOMC will move to stimulate the U.S. economy and that trade talks will bear fruit. Unfortunately, on the trade front, Donald Trump may have scuttled any chances for a deal this week. The U.S. president says China doesn’t live up to its promises.

The BOJ decided to hold interest rates steady at their meeting overnight. The bank says though, that is will not hesitate to lower rates and stimulate the economy if momentum toward the 2.0% inflation target wanes.

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
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.
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.