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Fed set to hike rates, deluge of Chinese data on deck, and U.S. tech swoon stops. Here are some of the things people in markets are talking about.
The Federal Reserve is almost universally expected to deliver an interest-rate hike on Wednesday despite recent sluggish inflation data. Policymakers will also update their forecasts and the so-called "dot plot." The decision will be followed by a press conference by Fed Chair Janet Yellen. Investors will be looking for the central bank to provide more clarity on any plans for balance sheet normalization this year -- in particular, how big its asset holdings will be when the process is through.
There's a Chinese data dump for the month of May due out at 11 a.m. Tokyo time, and investors will be looking to see whether a crackdown on leverage is taking a toll on real activity. Retail sales are forecast to maintain their 10.7 percent year-on-year increase, while the annual growth of industrial production slows a tick to 6.4 percent. Fixed asset investment is projected to have risen 8.8. percent year-to-date through May compared with the same period in 2016. Market watchers will also be looking to see whether the People's Bank of China follows the Fed in lifting rates, as it did in March.
The stock market's stretch of technical difficulties may have passed as the S&P 500 Index and Dow Jones Industrial Average ended the session at fresh records. The Nasdaq 100 Index was the best-performing major U.S. benchmark on Tuesday as technology stocks bounced back from their abrupt two-day selloff that had analysts scratching their heads. U.S. Attorney General Jeff Sessions' testimony before a Senate committee in the afternoon had little discernible impact on markets.
Brexit Means…No Brexit?
German Finance Minister Wolfgang Schaeuble said the U.K. would be allowed to stay in the European Union if they decide they no longer want to leave, sentiments echoed by French President Emmanuel Macron during a joint press conference with U.K. Prime Minister Theresa May. All indications so far suggest the British government plans to follow through with their move to leave in about 15 months. Conservative Party veterans are telling May to avoid a hard Brexit, just as she has expressed more openness to softening her stance in the wake of the election results. However, the prime minister did appoint Steve Baker, a leading E.U. opponent, as a junior Brexit minister.
The Japanese yen was the worst-performing G10 currency on Tuesday as risk appetite returned to markets. Indeed, both Nikkei 225 and S&P/ASX 200 futures are in positive territory ahead of their respective opens. The global market retreat ended in the Asia-Pacific region on Tuesday, with the regional benchmark gauge rising despite a dearth of support from the tech names that dragged the index lower the prior session.
What we’ve been reading
This is what caught our eye over the last 24 hours.
The glaring problem with the global economic rebound.
Charts that show the shifts in global energy.
Brazil's bad boy of finance now a billionaire cattle rancher.
Popular 'vampire' ETFs causing bank stocks to move in unison.
Trump administration calls for Wall Street regulatory overhaul.
Analyst upgrades, then downgrades company in same day.
The man who stands in line so you don't have to.