Price action is lingering just below with U.S and China trade talks and Middle East tensions front and center. China confirmed this morning that lower-level delegates are preparing for a meeting between President Trump and President Xi on the sidelines of the G-20 Summit June 27-29.
The Federal Reserve did not cut rates yesterday but removed ‘patient’ from their statement and said the case for a cut is building. They cited slowing global growth, inflation persistently below their 2% target and headwinds due to the U.S and China trade war as reasons to accommodate the economic expansion.
It’s Fed Day and expectations for a full dovish shift have fueled equity markets higher in recent weeks and truly all year. The S&P is about 1% from its all-time high and there is a 24.2% probability the Federal Reserve cuts rates.
An index of new orders in the U.S. Mid-Atlantic region advanced to its strongest level in almost three decades in March, suggesting an acceleration in local business activities, Philadelphia Federal Reserve data released on Thursday showed.
A number of European stock indices have broken out above their recent ranges, most notably Germany’s DAX Index which was up a good 1.5% at 10950 at the time of this writing.
U.S. labor costs accelerated in the third quarter as the jobs market continued to tighten, but remained well below levels that would push inflation closer to the Fed's target.
