What matters in the United States and global markets today
Written by Mike Dolan, editor, man, financial industry and financial markets
Since the Federal Reserve takes a commensurable turn in the face of Wall Street Ripon, the European Central Bank appears to be ready to reduce borrowing prices again – or at least this is what the markets expect.
In today’s column, I entered all the details and explained why the bond market does not seem very worried about long -term inflation. The answer may not be good news.
I will be out of tomorrow, as the US Securities Market will be closed to spend the great Friday holiday, then on the next week holiday. But “Morning Bid” will return on Tuesday, with all the coverage of the markets you are looking for from my colleagues in Reuters.
Now on market news.
Market accurate today
* European shares were mixed on Thursday, as investors analyzed corporate profits to measure the repercussions of US President Donald Trump’s wrong trade, while waiting for the European Central Bank’s policy decision later in the day.
Finance Minister Katsonobo Kato said on Thursday in the strongest warning for the government, even when the two countries began in commercial talks, that Japan “is deeply concerned” due to the repercussions of the global economy from the customs tariff of US President Donald Trump.
* Certainly, US President Donald Trump’s desire for the strongest versus the dollar is in mind in trade negotiations with Japan, but analysts say that any effort to change currency is risky on both sides.
* Jerome Powell, the US Federal Reserve Chairman, said on Wednesday that the Federal Reserve will wait for more data about the direction of the economy before changing interest rates, but warned that President Donald Trump’s policies were subjected to inflation and employment pressure more than the central bank’s goals.
* Plans in full swing of an American -owned company seized by the Kremlin and put it under the control of the state to use to provide food with the Russian army, showed the Reuters document, which may threaten Moscow’s warming with the United States with the United States
European Central Bank Group to alleviate it, as it provides Fed
The final trading day of a holiday week’s holiday week is witnessing that future stocks regain some of the sharp losses led by technology on Wednesday. Its victory over the profits from TSMC in Taiwan, and the unchanged revenue growth expectations, helped to install the chips ship, which is volatile again yesterday as a new licensing drawings linked to the US -Chinese trading stickers by approximately 7 %.
But if investors from the Federal Reserve expect to save the market, President Jay Powell explained that this does not happen any time soon.
Speaking at Chicago late yesterday, Powell seemed to indicate that the central bank would be suspended for a long time to reduce inflation expectations.
“The definitions are likely to generate a temporary increase in inflation,” he said. “The inflationary effects can be more stable.”
While Powell’s intention to keep the line did little to make up for a 2 % decrease in the S& P 500 index, the treasury revenues have declined with the long -term inflation forecast measures continued for long -term.
Meanwhile, Canada Bank surprised some by resisting price reduction on Wednesday, and perhaps familiar with the upcoming Canadian elections. With this recession in North America in the background, the European Central Bank is now on the deck.
Money markets are priced to reduce the average central bank rate at another quarter point today to 2.25 %, as the euro is close to the highest level in the sick dollar amid uncertainty in the increasing trade war, and the real actual exchange rate index in the euro is higher than 10 years.
The euro has emanated a touch before the decision, as Bund German Bund and the numbers of the euro stock standards in red were left slightly. Rare profits from the luxury brand Hermes surpassed the mood.
Once again in Wall Street, investors are waiting for another heavy version of housing updates, unemployed and profits, including Netflix, on Thursday. Retail and industry numbers in March only showed slight losses on the most sensitive readings.
On the Trade War Front, attention turns into Washington’s negotiations with the delegation of Japan. Italian Prime Minister Georgia Meloni also meets President Donald Trump on Thursday.
Finally, check my column today, see how it seems that the solid federal reserve position in the face of induction and the fluctuation of the market wins the battle to maintain long -term inflation expectations.
Today’s scheme
With the escalation of the American -Chinese trade war, everyone is watching China’s possession of US government debts such as falcon, especially after a serious disturbance in the treasury market last week. Treasury data on foreign holdings of US debt papers issued on Wednesday is only for February – before the tariff cycle was launched. But the numbers showed that the Chinese entities have actually showed during the month, although this is likely to be only part of the image.
China received $ 784.3 billion, an increase of $ 760.8 billion, and Japanese investors also raised. There is a assumption that many Chinese holdings are held by the agent in Europe, most likely captured as Belgian illnesses where there is a European clearing house. However, the Belgium -based holdings increased by about $ 20 billion in February. So if China has been emptied of cabinets recently, we will have to wait for more difficult data to find out.
Today’s events to watch
* European Central Bank’s policy decision, with a press conference from the President of the European Central Bank, Christine Lagarde
* Beginnings/US housing permits, unemployed demands for the weekend, wiping work in Federal Philadelphia in April
* The ruler of the Federal Reserve Michael Bar
* The Administrative Director of the International Monetary Fund Crystalina Georgiva speaks before the meeting of the Spring of the International Monetary Fund/World Bank
* Japanese Economy Minister Riosi Akazawa meets US Treasury Secretary Scott Beesen in Washington. Italian Prime Minister Georgia Meloni meets US President Donald Trump in Washington
* American companies profits: Netflix, American Express, State Street, Blackstone, Charles Schwab, Snap-on, Fifth Third Bancorp, Dr Horton, Keycorp, Huntington Bancshares, Marsh & McLennan, UNITEDHELHELTH, Truist Financial
* The US Treasury Department sells protected securities for a period of 5 years
The views expressed are the views of the author. It does not reflect the opinions of Reuters news, which, according to the principles of confidence, is committed to integrity, independence and liberation from bias.
(Written by Mike Dolan; Editing by Anna Sizymanski)
