Stocks Point Higher Ahead of FOMC
Fiona Cincotta June 10, 2020 2:50 PM
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.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.