|Day's Range||2,887.30 - 2,897.27|
|52 Week Range||2,346.58 - 2,954.13|
The Census Bureau on Tuesday will release data on May housing starts and building permits. The report will provide the latest glimpse into the state of the housing market amid a pullback in mortgage rates and mixed signals on homebuilder sentiment.
U.S. stocks ticked up Monday as investors awaited monetary policy decisions from several major central banks later this week.
CME Group futures suggest a 20% chance of a June rate cut, with the balances of bets suggesting the Fed will reduce its key target rate in July. Global sentiment, however, remains tempered as investors react to a U.S. decision to move 1,000 troops into the Gulf region to counter "credible" threats from Iran. Global oil prices slip for a third session as traders prefer to focus on weakening demand metrics and record U.S. production rates over regional military tensions and OPEC output cuts.
(Bloomberg) -- Stocks turned higher on Tuesday and bonds rallied as comments from the president of the ECB added fuel to investors’ hopes for easier monetary policies from the world’s biggest central banks.The Stoxx Europe 600 reversed an early drop and the euro swung from a gain to a loss as European Central Bank President Mario Draghi said additional stimulus, including rate cuts, may be needed if the economic outlook doesn’t improve. S&P 500 index futures gained, while Japan’s Topix bucked the trend as most Asian gauges climbed.Investors are also focusing on the Federal Reserve’s statement and press conference Wednesday to see whether Chairman Jerome Powell and his colleagues will validate widespread expectations for interest-rate cuts. Oil pared earlier declines, with OPEC nations still unable to agree on a date for their next meeting, adding to uncertainty over whether production cuts would be extended.Traders have largely refrained from putting on big bets ahead of the key Fed decision coming Wednesday, where they will look for signals on the likelihood of interest-rates cuts ahead. That’s the headline act in a week that also includes the ECB gathering in Sintra, Portugal as well as Bank of England and Bank of Japan policy announcements.Elsewhere, the Aussie ticked lower after the Reserve Bank of Australia said that further easing is more likely than not in the period ahead.Here are some key events coming up:The European Central Bank’s annual symposium in Sintra takes place through Tuesday.Federal Reserve, the Bank of Japan and the Bank of England all set monetary policy, along with central banks in Norway, Brazil, Taiwan and Indonesia.The Fed meeting begins Tuesday with a decision and press conference the next day. Officials are expected to debate a rate cut to shelter the U.S. economy, in part, from the fallout caused by escalating trade disputes.In the U.K. Tuesday there will be a second ballot on the leadership contest to choose Theresa May’s successor as leader of the country’s ruling party.Final May CPI data for the euro zone are due Tuesday and for Britain on Wednesday. U.K. retail sales are set for release on Thursday. These are the main moves in markets:StocksThe Stoxx Europe 600 Index advanced 0.8% as of 9:44 a.m. London time.Futures on the S&P 500 Index gained 0.4%.Hong Kong’s Hang Seng Index climbed 1% on the largest increase in more than a week.The MSCI Emerging Market Index increased 0.6%, the first advance in a week.CurrenciesThe Bloomberg Dollar Spot Index climbed less than 0.05% on its fifth consecutive advance.The euro weakened 0.2% to $1.1195.The Japanese yen strengthened 0.2% to 108.28 per dollar.BondsThe yield on 10-year Treasuries sank four basis points to 2.06% on the biggest tumble in more than two weeks.Britain’s 10-year yield declined three basis points to 0.822%.Germany’s 10-year yield decreased five basis points to -0.297%.CommoditiesGold advanced 0.4% to $1,345.08 an ounce.West Texas Intermediate crude declined 0.1% to $51.89 a barrel.Corn sank 1.2% to $4.63 a bushel and the largest tumble in almost two weeks.\--With assistance from Cormac Mullen.To contact the reporter on this story: Todd White in Madrid at firstname.lastname@example.orgTo contact the editors responsible for this story: Christopher Anstey at email@example.com, Robert BrandFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Stock futures signal a market rally. Facebook kept rising on cryptocurrency buzz. MoneyGram soared on a Ripple alliance.
European markets nudged lower at the open as technology shares weighed, while investors looked ahead to central bank updates including from the European Cental Bank and Federal Reserve. Investors are anticipating the US Federal Open Market Committee’s meeting on Wednesday, where it is expected to keep interest rates steady despite markets pricing in a small chance of a cut.
(Bloomberg) -- Europe’s equity benchmark has been moving within a tight range over the past five sessions. Trade wars, geopolitical instability and poor global macro data are spurring concerns, yet there’s been no big sell-off. It seems that investors are counting on the Fed to save the day tomorrow with a rate cut.European stocks tend to react positively to a first U.S. rate cut in a cycle, as they have typically risen by 2% in the month that follows, according to Goldman Sachs strategists. It’s not a given though, as it occurred only two-thirds of the time. On the other hand, the euro rose in 77% of the cases, Goldman says.Traders seem to have already priced in at least one cut before the end of the year, even if economists are still debating the timing. The implied probability of a 25 basis point cut has moved to almost 100% today.The resilience of the market is likely built on rate-cut expectations, JPMorgan strategists write, which makes it vulnerable to a sell-off if the Fed this week doesn’t give a strong indication of a rate cut. The central bank needs to show it’s ahead of the curve, especially with the upcoming G-20 meeting (June 28-29) and the very low likelihood of positive trade talks between the U.S and China, they say.Meanwhile, the economy has been sending more warnings signals. The U.S. jobs market is showing signs of fatigue, U.S. macro surprises have come down, and remain negative in Europe. Yesterday’s Fed Empire manufacturing index had a record fall, hitting its lowest level since 2016.This month, the Morgan Stanley Business Conditions Index plummeted to its lowest level since 2008, a bad omen for the ISM manufacturing index and thus the S&P 500, Morgan Stanley says. Should the historical relationship hold, this would mean the S&P could drop 8% from current levels. And that would have a ripple effect on European stocks.The business index is also indicative of future revisions to earnings, as it’s driven by analyst surveys. The trend seems to have started already if you look at the Citigroup’s Earnings Revision Index, with expectations for companies’ results dropping in a similar fashion to the second half of last year.The Fed’s reaction to the deteriorating outlook will be closely watched on Wednesday, and the big question remains over what it can do to support the market. Failure to act could send stocks into a perfect storm.In the meantime, Euro Stoxx 50 futures are trading down 0.2% ahead of the open.SECTORS IN FOCUS TODAY:Watch oil companies after softer U.S. economic numbers hit the oil price as crude traders continue to balance out supply assurances and demand concerns. It appears OPEC is having trouble agreeing when it will meet next. Iran faces yet more criticism from U.S. politicians following its threat about breaching enriched uranium caps and President Trump decided to send more troops to the Middle East.Watch the pound and U.K. stocks as Boris Johnson remains the frontrunner but outsider Rory Stewart appears to have made waves. Separately, a Bloomberg survey shows economists expect a stagnant U.K. economy in the second quarter.COMMENT:“After the strong rebound since the start of the month, we think risks remain symmetric near term given a potential disappointment from the Fed and the ongoing uncertainty on US/China trade tensions,” Goldman Strategists write in a note. “We prefer to position via options near term as the risk of larger equity drawdowns remains elevated. Our options strategists prefer S&P 500 collars given the low level of skew.”COMPANY NEWS AND M&A:Airbus Jumps Ahead With New Jet in Paris While Boeing FloundersAmerican Air Mulls Ordering Up to 50 of Airbus’s New A321XLR JetInfineon Says Shares Placed at EU13.70, Gross Proceeds EU1.55bScania CEO Says Margin Will Increase in Coming Quarters: DIEU28 May Car Registrations Rise 0.1% Y/y to 1.401m UnitsSwedbank’s Estonian Unit Replaces CEO, CFO After Internal ProbeAgeas Got More Claims Than Expected in Fortis Settlement: FDShort Sellers Circle Blue Prism After 2,200% Rally Since IPOHutchison Chi-Med Is Said to Delay Launch of Hong Kong ListingTieto to Acquire Evry for NOK35.48/Share in Cash, Share DealItaly’s UBI Mandates KPMG to Find Single Insurance Partner: SoleCGG Wins Multi-Year Processing Contract From AdnocNordex Gets 300 MW Order From Engie UnitDassault Systemes Lead Investor in EU65m BioSerenity FinancingDeoleo Reaches Agreement to Refinance EU553M Debt: ConfidencialAmbu Cuts FY Outlook and Lowers Mid-Term Targets After ReviewVapiano Sees 2019 Net Sales Missing Estimates, Slower ExpansionNOTES FROM THE SELL SIDE:BBVA and CaixaBank are the stand-out names in a Spanish banking sector contending with lower-for-longer Euribor rates and muted domestic loan growth, RBC analysts write in a note. CaixaBank, BBVA both at outperform; Santander also outperform with Sabadell and Bankinter at sector perform and Bankia at underperform.Citi cut Evraz to sell at Citi. Broker cut the former top pick and CEEMEA focus list member as Ebitda and free cash flow are “sharply declining.” European hotel operators with headroom on their balance sheets are likely to focus on making acquisitions given slowing organic growth in the industry, Citi says in a note. Broker has buy rating on Accor due to exposure to Europe and France, the only regions showing RevPAR growth; sell on IHG given heavy U.S. exposure, and neutral on Whitbread but as single brand operator is likely to be of interest to a private equity buyer.TECHNICAL OUTLOOK for Stoxx 600 index:Resistance at 382 (50-DMA); 385.7 (61.8% Fibo)Support at 374.5 (61.8% Fibo); 368.2 (200-DMA)RSI: 51.2TECHNICAL OUTLOOK for Euro Stoxx 50 index:Resistance at 3,408 (50-DMA); 3,514 (May high)Support at 3,309 (50% Fibo); 3,266 (200-DMA)RSI: 52MAIN RESEARCH AND RATING CHANGES:UPGRADES:Accor Upgraded to Outperform at Bernstein; PT Set to 44 EurosDanone upgraded to outperform at DavyTokmanni Group upgraded to buy at Handelsbanken; PT 9.30 EurosDOWNGRADES:Avesoro Resources downgraded to hold at BerenbergBauer cut to hold at Kepler Cheuvreux; Price Target 22 EurosDerwent London cut to underweight at Barclays; PT 30 PoundsEvraz downgraded to sell at CitiEvraz Cut to Hold at VTB Capital; Price Target 6.70 PoundsHomeserve cut to equal-weight at Barclays; PT 13.20 PoundsInterContinental Hotels cut to underweight at BarclaysLufthansa downgraded to hold at HSBC; PT 16.50 EurosLufthansa Downgraded to Hold at SocGen; PT 17 EurosINITIATIONS:STMicroelectronics rated new buy at SocGen; PT 23.60 EurosVeolia rated new outperform at MainFirst; PT 24.70 EurosMARKETS:MSCI Asia Pacific down 0.4%, Nikkei 225 down 0.9% S&P 500 up 0.1%, Dow up 0.1%, Nasdaq up 0.6%Euro up 0.16% at $1.1236Dollar Index down 0.15% at 97.41Yen up 0.24% at 108.28Brent little changed at $60.9/bbl, WTI down 0.1% to $51.9/bblLME 3m Copper little changed at $5843.5/MTGold spot up 0.4% at $1345.5/ozUS 10Yr yield down 2bps at 2.07% ECONOMIC DATA (All times CET):8:45am: (IT) Bloomberg June Italy Economic Survey9am: (SP) 1Q Labour Costs YoY, prior 0.9%9:30am: (UK) Bloomberg June United Kingdom Economic Survey11am: (EC) April Trade Balance SA, est. 17b, prior 17.9b11am: (EC) April Trade Balance NSA, prior 22.5b11am: (EC) May CPI Core YoY, est. 0.8%, prior 0.8%11am: (EC) May CPI MoM, est. 0.2%, prior 0.7%11am: (EC) May CPI YoY, est. 1.2%11am: (GE) June ZEW Survey Current Situation, est. 6.1, prior 8.211am: (GE) June ZEW Survey Expectations, est. -5.6, prior -2.111am: (EC) June ZEW Survey Expectations, prior -1.6To contact the reporter on this story: Michael Msika in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Blaise Robinson at email@example.com, Jon MenonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Asian markets mostly gained in muted early trading Tuesday, as investors awaited key central bank meetings later this week.
Helping the NASDAQ Composite to outperform the other majors were shares of Facebook and Netflix, which gained 4.2% and 3.2%, respectively. Amazon posted a 0.9% gain, Google parent Alphabet rose 0.7% and Apple rallied 0.6%.
TOKYO/HONG KONG (Reuters) - Most Asian stock markets rose on Tuesday but gains were capped by investor caution ahead of a U.S. Federal Reserve policy decision, while crude oil prices dipped as global growth worries overshadowed supply concerns. European stock markets were set to open mixed, with futures for London's FTSE trading flat but those for Germany's DAX and the pan-region Euro Stoxx 50 futures down 0.2%. The Fed, facing fresh demands by U.S. President Donald Trump to cut interest rates, begins a two-day meeting later on Tuesday.
The world’s No. 1 cryptocurrency is on fire, with a price approaching $10,000, pushing the digital asset near its highest level in more than 14 months, according to MarketWatch data provided by CoinDesk.
Stocks inched higher on Monday ahead of the Federal Reserve’s June meeting tomorrow. Many are expecting a more dovish tone from the central bank to signal support for the market.
Fitch Ratings on Monday cut its global economic outlook for 2020, blaming the ongoing trade war, and warned that central banks won’t be able to compensate for depressed business investment.
MSCI's gauge of stocks across the globe shed 0.06%, as modest increases for Wall Street's main indexes led by the tech-heavy Nasdaq were countered by some weakness in Europe. The U.S. Federal Reserve is set to give its policy statement on Wednesday, with expectations running high the central bank is poised to cut interest rates this year.
Wall Street edged higher on Monday, supported by Facebook, Amazon and Apple, as investors awaited a key Federal Reserve meeting that is expected to lay the groundwork for an interest rate cut later this year. The U.S. central bank is expected to leave borrowing costs unchanged at its two-day policy meeting starting Tuesday, but its statement will provide insight into the impact of the U.S.-China trade war, President Donald Trump's calls for a rate cut and weaker economic data. With investors expecting a rate cut as early as July, the S&P 500 index has risen 5% this month after tumbling in May due to fears about the U.S.-China trade war.
Clamoring for a rate cut by the Federal Reserve at some point this year is running high, but the Fed may not comply.
U.S. stocks close higher Monday on the back of strong gains in social media and entertainment shares such as Facebook Inc. and Netflix Inc.
U.S. stocks eked out modest to slight gains on Monday, powered by a climb in shares of technology-related and communication services shares. The Dow Jones Industrial Average closed up 0.1% at 26,112, picking up 23 points, the S&P 500 index rose 0.1% to 2,890, while the Nasdaq Composite Index advanced 0.6% to 7,845. The gains came as a gauge of manufacturing activity in the New York area, the Empire State manufacturing index, plummeted 26.4 points to negative 8.6 in June, a record decline. Economists had expected a reading of positive 10, according to a survey by Econoday. The weak survey data come as the Federal Reserve commences its two-day policy meeting Tuesday, where the central bank may indicate its willigness to reduce benchmark borrowing costs amid fears of the fallout from global trade tensions and a slowdown in the economy. In corporate news, shares of Facebook Inc. gained as interest grew around its reported cryptocurrency offering, Libra coin, set to debut on Tuesday.