{"id":131203,"date":"2018-08-02T07:35:48","date_gmt":"2018-08-02T11:35:48","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=131203"},"modified":"2018-08-02T07:06:07","modified_gmt":"2018-08-02T11:06:07","slug":"stocks-end-lower-as-fed-signals-another-hike-soon","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/08\/stocks-end-lower-as-fed-signals-another-hike-soon\/","title":{"rendered":"Stocks end lower as Fed signals another hike soon"},"content":{"rendered":"
August 2, 2018<\/div>
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By IFCMarkets<\/a><\/p>\n

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Dollar holds gains as Fed leaves rates unchanged<\/h2>\n<\/div>\n<\/div>\n

US stocks\u00a0<\/b>pulled back slightly on Wednesday after the Federal Reserve left interest rates unchanged but signaled a rate increase in September. The\u00a0S&P 500<\/a>\u00a0slipped 0.1% to 2813.36. The\u00a0Dow Jones\u00a0<\/em>industrial average lost 0.3% to 25333.82.\u00a0Nasdaq\u00a0<\/em>composite index however gained 0.5% to 7707.29.The dollar strengthening slowed: the\u00a0live dollar index<\/a>\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, added 0.1% to 94.637 and is higher currently. Stock index futures indicate lower openings today.<\/p>\n

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The Fed left its benchmark overnight lending rate in a range of 1.75% – 2.00%. However it stated \u201cEconomic activity has been rising at a strong rate,\u201d instead of characterizing economy’s growth rate as ‘solid’ like it did in its June statement. Federal funds futures indicate traders are pricing in about a 91% chance of a rate rise in September and a 71% chance of an additional hike in December, according to CME Group\u2019s FedWatch data.<\/p>\n<\/div>\n<\/div>\n

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DAX 30 leads European indices losses<\/h2>\n<\/div>\n<\/div>\n

European stocks\u00a0<\/b>retreated on Wednesday on a mixed batch of corporate reports. The\u00a0British Pound\u00a0<\/em>turned higher against the dollar while\u00a0euro\u00a0<\/em>accelerated its decline and both are lower currently. The Stoxx Europe 600 lost 0.5%. Germany\u2019s\u00a0DAX 30\u00a0<\/em>ended 0.5% lower at 12737.05. France\u2019s\u00a0CAC 40\u00a0<\/a>slipped 0.2% and UK\u2019s\u00a0FTSE 100\u00a0<\/em>slumped 1.2% to 7652.91. Indices opened 0.1% – 1% lower today.<\/p>\n

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The Bank of England is expected to hike rates to 0.75% from 0.5% at a meeting today with the statement scheduled at 13:00 CET. In economic news the final reading on Markit\u2019s manufacturing PMI in the euro-zone in July came in unchanged at 55.1. Readings above 50 indicate expansion in business activity.<\/p>\n<\/div>\n<\/div>\n

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Chinese shares lead Asian indices losses<\/h2>\n<\/div>\n<\/div>\n

Asian stock indices<\/b>\u00a0are falling today after US administration on Wednesday increased pressure on China for trade concessions by proposing a higher 25% percent tariff on $200 billion worth of Chinese imports instead of 10% announced earlier. Beijing responded by saying \u201cChina will inevitably take countermeasures.\u201d\u00a0Nikkei\u00a0<\/em>ended 1% lower at 22512.53 as the yen climb against the dollar continued. China\u2019s stocks are sharply lower: the\u00a0Shanghai Composite Index\u00a0<\/em>is down 2% and Hong Kong\u2019s\u00a0Hang Seng Index\u00a0<\/em>is 2.4% lower. Australia\u2019s All Ordinaries Index lost 0.6% despite continued Australian dollar decline against the greenback.<\/p>\n

\"HK50\"<\/p>\n

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Brent\u00a0<\/a>lower on big US crude stocks build<\/h2>\n<\/div>\n<\/div>\n

Brent futures prices\u00a0<\/b>are lower today after the Energy Information Administration reported Wednesday that domestic crude supplies rose by 3.8 million barrels last week. Prices ended sharply lower yesterday: October Brent crude fell 2.5% to $72.39 a barrel on Wednesday.<\/p>\n<\/div>\n<\/div>\n

Market Analysis provided by IFCMarkets<\/a><\/p>\n

Note:
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<\/div>\n","protected":false},"excerpt":{"rendered":"

By IFCMarkets Dollar holds gains as Fed leaves rates unchanged US stocks\u00a0pulled back slightly on Wednesday after the Federal Reserve left interest rates unchanged but signaled a rate increase in September. The\u00a0S&P 500\u00a0slipped 0.1% to 2813.36. The\u00a0Dow Jones\u00a0industrial average lost 0.3% to 25333.82.\u00a0Nasdaq\u00a0composite index however gained 0.5% to 7707.29.The dollar strengthening slowed: the\u00a0live dollar index\u00a0data […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-131203","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/131203","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=131203"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/131203\/revisions"}],"predecessor-version":[{"id":131212,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/131203\/revisions\/131212"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=131203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=131203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=131203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}