Stocks Point Higher Ahead of FOMC
Fiona Cincotta June 10, 2020 2:50 AM
and Europe is pointing to a stronger start as investors look ahead to the Federal Reserve monetary policy announcement later today.
After a mixed closed on Wall Street, Asian stocks have pushed higher and Europe is pointing to a mildly stronger start on reopening optimism as investors look ahead to the Federal Reserve monetary policy announcement later today.
The Fed meeting comes as US stocks markets have risen to unimaginable levels given the scale of the coronavirus crisis impact on the economy. The Nasdaq passed through 10,000 for the first time on Tuesday. Strong gains in tech related shares made the Nasdaq a global outperformer. The S&P had also erased all gains for the year on Monday, although a slight sell off yesterday pulled the index back into red on the year.
In comparison the FTSE is a clear underperformer compared to its US counterparts or even the Dax here in Europe. The FTSE is still down -15% on the year, the Dax is just -2%. This is partly to do with the make up of the FTSE - the fact that it has fewer tech stocks, which have surged in lockdown and is more heavily weighed towards mining stocks and oil stocks. Commodities fell hard, particularly oil and their recovery is proving to be much more drawn out, not helped by the disappointingly slow road to recovery for China, the world’s largest metal consumer.
Data overnight showed Chinese inflation at factory level fell -3.7%, worse than the -3.3% forecast and down from 3.1% in April. Consumer inflation was also weak, falling -2.4% yoy. The disappointing data shows that demand remains weak and domestic recovery wasn’t gaining traction a quickly as hoped.
FTSE is set to lag its peers on the open.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.