Market movers today
On a day with a few data releases, the market will continue to follow any hints from US and Chinese officials ahead of the ever important trade talks at the G20 meeting in Argentina this coming weekend. Market sentiment remains extremely sensitive after the US administration recently signalled its frustration with the Chinese proposals.
Fed Chairman Powell is due to speak at 18.00 CET, which could provide interesting clues about the Fed’s view of the US economy and the rate hike intentions in 2019.
Given the sharp fall in oil prices recently, today’s number for US crude oil inventories will be of particular interest.
US home sales will also be of interest given the weakening signals from the US housing market, which is one of the only weak spots in the US economy at the moment.
Selected market news
Asian equity markets rose this morning as investors are looking for a breakthrough in the US-China trade dispute and comments from Fed officials on rate hikes. We have had a number of Fed speeches. Fed Vice Chairman Clarida backed the more gradual approach to rate rises and stated that risks ‘was less skewed to the downside’, while St. Louis Fed President Bullard was more cautious and said the Fed must monitor possible ‘cracks’ in the recovery, while others called for a more neutral policy and noted there were pockets of distress and that the trade dispute with China was not helping the economy.
The Fed Chairman was also criticised by President Trump for raising rates. Hence, there will be plenty of focus on the speech tonight by Powell.
There has been a modest rise in the oil price as Brent jumped more than 1% in yesterday’s trading.
We have a string of ECB speeches today as well as the Bank of England’s financial stability report.
