Global Markets Down On More Hawkish Fed, Trump Obstruction Investigation

This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission.

(Kitco News) – World stock markets were mostly weaker overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins.

The news reports late Wednesday that special prosecutor Robert Mueller will investigate U.S. President Donald Trump for obstruction of justice has thrown more uncertainty into the world marketplace.

Gold prices are solidly lower in pre-U.S.-session trading Thursday. The yellow metal is pressured by the hawkish reading the marketplace gave this week’s FOMC meeting.

The Federal Reserve on Wednesday afternoon raised U.S. interest rates by 0.25%, as expected by most. The Fed said it will also fairly aggressively reduce its big balance sheet of government securities in the coming months. The FOMC statement also said U.S. inflationary pressures have eased a bit recently. However, Fed Chair Janet Yellen at her press conference sounded a more hawkish tone on inflation. After digesting the FOMC statement and Yellen’s remarks, the marketplace deemed this latest Fed meeting as more hawkish on U.S. monetary policy.

The Bank of England held its monetary policy meeting Thursday and left interest rates unchanged. The Bank of Japan also held its regular monetary policy meeting Thursday. The Swiss National Bank left its monetary policy unchanged at its meeting. The Hong Kong Monetary Authority raised its key interest rate by 0.25% on Thursday.

The key “outside markets” on Thursday morning see Nymex crude oil futures prices slightly lower, following another bearish weekly U.S. energy stocks report Wednesday. The oil market bears have the firm overall near-term technical advantage as prices trade well below $50.00 a barrel. Meantime, the U.S. dollar index is higher and is supported on the more hawkish Fed tone on U.S. monetary policy. The greenback bears hold the firm near-term technical advantage.

U.S. economic data due for release Thursday includes the weekly jobless claims report, import and export prices, the Empire State manufacturing survey, the Philadelphia Fed business survey, industrial production and capacity utilization, the NAHB housing market index, and Treasury international capital data.


To get full access to all Money Morning content, click here

About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and visitors become smarter, more confident investors.

Disclaimer: © 2017 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.

The post Global Markets Down On More Hawkish Fed, Trump Obstruction Investigation appeared first on Money Morning – We Make Investing Profitable.

Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

Leave a Reply