Wednesday, 12 July 2017

US equities to open higher ahead of Fed’s Yellen speech

Posted by Anonymous at 15:23 Labels:

US stock indexes are set for a higher open on Wednesday pre-session hours, with market players looking ahead of Federal Reserve Chair Janet Yellen remarks later in the day.

Wall Street stock indexes ended mixed on Tuesday, with the Trump-Russia political scandal reawakening concerns over the future of the Republican administration.

The hit came from Donald Trump Jr., who released an email chain explaining the circumstances that led to the meeting with a top-tier Russian lawyer.

Both media and the Democrats are pretty invested in the Russian-electoral interference case. And that’s been weighing on the Trump cabinet for quite some time already. Market participants fear that this issue could lead into irreversible political damages, such as an impeachment.

Trump’s ability to push its economic agenda in Congress is also on the line. So far, the healthcare reform has faced strong opposition from both parties, and the tax bill seems to be delayed for August or even later in the year.

  • Dow Jones Industrial Average: 0.55 / 0.00% / 21409.07
  • Standard & Poor’s 500: -1.90 / -0.08% / 2425.53
  • Nasdaq Composite: 16.91 / 0.27% / 6193.31

In economic news, the Labor Department said JOLTs Job Openings for May dropped to 5.7 million from a previous reading of 6.0 million and a forecasted move to 5.950 million.

Market analysts noted that the Street is reacting a bit more than the usual to releases due to the lack of information and light summer trade volumes.

Ahead in the session, attention will be mainly directed to Fed Chair Janet Yellen’s speech as of 14:00 GMT on monetary policy. Investors will be looking for hints on the timing of the next interest rate hike, as well as details on the plan to reduce Fed’s massive balance sheet.

According to Fed funds tracked by CME Group’s FedWatch tool, traders are pricing in a 50.9 percent probability of a 25 basis points hike by December.

The US Energy Information Administration is set to publish its oil and refined products stockpiles for the week ended July 7. Fed’s Beige Book will be out at 18:00 GMT. Kansas City Fed President Esther George will present its economic outlook in Denver as of 18:15 GMT

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