SYDNEY (Reuters) – Asian stocks were left adrift on Tuesday as expectations of more dovish talk from the Federal Reserve pushed down Treasury yields and the dollar, while lifting gold to six-year peaks.
Equity investors are waiting to see if anything will come of Sino-U.S. trade talks later this week.
US - President - Donald - Trump - World
U.S. President Donald Trump is slated to meet one-on-one with at least eight world leaders at the G20 summit in Osaka, including China’s President Xi Jinping and Russian President Vladimir Putin.
E-Mini futures for the S&P 500 edged up 0.08% after a lackluster session on Wall Street. The Dow ended Monday up 0.03%, while the S&P 500 lost 0.17% and the Nasdaq 0.32%.
Fed - Policy - Makers - Tuesday - Chair
There are no less than five Fed policy makers speaking on Tuesday, including Chair Jerome Powell, and markets assume they will stick with the recent dovish message.
“It’s always possible the chair could walk back some of the market’s dovish interpretation of last week’s FOMC meeting…but we suspect he will reinforce the message laid out last week,” said Kevin Cummins, a senior U.S. economist at NatWest Markets.
End - July - Fed - Action - Risks
“By the end of July, we believe the Fed will have seen enough to decide that action to counter downside economic risks and low inflation/inflation expectations is warranted, and so we look for a 25 basis point rate cut at the next FOMC meeting.”
Markets are running well ahead...
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