European equities have stumbled as the U.S Dollar has become weaker. Japanese equities traded lower this morning, but the Shanghai Shenzhen and Hang Seng were positive. Core Consumer Price Index data will come from the States tomorrow, along with Retail Sales.
U.S Stocks Expected to Open Lower, Trump Introduces Spending Packages
After two solid days of gains by Wall Street, Futures Markets are indicating the three major Indexes will open with losses today. Asian markets did well via equities from the Shanghai Shenzhen and Hang Seng composites this morning, but Japanese equities stumbled. The Yen has been stronger, and the Euro and Pound have also gained versus the U.S Dollar, which has put pressure on European equities across the board. U.S President Trump introduced a new spending package yesterday, which includes a massive increase of money for the military and infrastructure throughout the States. U.S data will remain light today, but there will be a speech given by Federal Reserve member Loretta Mester.
Key Data from States Coming, Core CPI, and Retail Sales Wednesday
Consumer Price Index data released from the U.K shortly ago came in slightly higher than expected with a gain of 3.0%. This may continue to fuel hawkish rhetoric from certain Bank of England members such as Ian McCafferty who suggested interest rates in Britain will rise faster than most expect. It has been a relatively quiet week and a half of economic data from the United States, but that will begin to change tomorrow when Core CPI and Retail Sales figures are published. Global investors are focused on inflation data coming from the States as they try to gauge the timing for future interest rate hikes from the Fed. While many investors are already counting on a March increase, the question is when the next hike will follow. A strong inflation result tomorrow could be an indicator of more action from the Federal Reserve as early as June or July. The broad markets will be affected by the results.
Additional Gains Made Early in Gold, Turbulent Conditions Expected
Gold has put in additional gains the past few hours and is trading near 1327.00 U.S Dollars. The precious metal is has come off lows and has performed well since the middle of last week. Speculative action will likely remain prevalent and fast today, particularly if Wall Street has turbulence.
FOMC Speech Coming from Mester, Japanese Growth Figures Later
Late tonight at 23:50 GMT, Japan will release its Gross Domestic Product figures and this will impact the Asian markets as they open.
- 13:00 PM GMT U.S, Federal Reserve Member Mester Speaking
- 23:50 PM GMT Japan, Preliminary Gross Domestic Product
Yaron Mazor is a senior analyst at SuperTraderTV.