Breaking News
0

Top 5 Things to Know in the Market on Wednesday

EconomyJun 19, 2019 05:37AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com - Here are the top five things you need to know in financial markets on Wednesday, June 19:

1. Fed easing bias expected in policy decision

The Federal Reserve is widely expected to leave interest rates unchanged when it announces its policy decision at 2:00 PM ET (18:00 GMT), but analysts are convinced that the U.S. central bank will signal a more dovish stance in order to set the stage for cuts later in the year.

Market focus will be on the dot-plot - included in the economic projections published alongside the statement - that reflects policymakers’ projections for the future path of interest rates.

A half an hour after the decision, Fed Chairman Jerome Powell will lay out the summary of the monetary policy meeting and deliver remarks on the current outlook.

Read more: Fed Preview: Caught Between Pride And Pragmatism - Darrel Delamaide

Fed fund futures price in a more than 80% chance of a rate cut in July, with an additional two cuts by the end of the year holding just below the 50% mark.

Ongoing trade tensions between the U.S. and China coupled with muted inflation data have increased the pressure for more policy easing.

U.S. President Donald Trump has also consistently attacked the Fed for not lowering rates, with Bloomberg reporting on Tuesday that the White House studied demoting Powell back in February.

When asked on Tuesday if he still wished to demote Powell, Trump responded, “Let’s see what he does.”

2. Caution reigns on Wall Street ahead of Fed

U.S. futures remained in a holding pattern near the unchanged mark ahead of the Fed policy decision and Powell’s appearance.

Muted trade came after a strong finish on Wall Street Tuesday, with bulls buoyed by Trump’s tweet that trade negotiations with China would move back into motion ahead of an “extended meeting” with Chinese President Xi Jinping at the G20 next week.

The solid gains spread to Asian shares overnight with Japan’s Nikkei 225 jumping 1.8% and China’s Shanghai Composite ending 1% higher.

European shares underwent profit-taking on Wednesday after comments from European Central Bank President Mario Draghi on the likely need for additional stimulus sent the region’s stock markets to their best performance in five months on Tuesday.

3. Oil markets wary of another surprise inventory build

The Energy Information Administration petroleum report is due Wednesday, with markets wary that U.S. crude stockpiles could stage an unexpected build for the third-straight week.

Consensus forecasts a draw in crude stockpiles of 1.08 million barrels for the week ended June 14, but the prior two EIA reports registered an unexpected surge in inventories, driving oil prices lower.

In its own report released late Tuesday, the American Petroleum Institute saw a draw of 0.812 million barrels last week.

4. CBS preps offer to rejoin Viacom

CBS (NYSE:CBS) is reportedly once again preparing a buyout offer for Viacom (NASDAQ:VIA) in the coming weeks, according to sources cited by The Wall Street Journal.

Preliminary discussions have already taken place over the layout for the deal in what would be a third attempt to reunite the companies that were broken up over a decade ago.

WSJ emphasized however that a deal was “far from certain” with fixing the price for a stock transaction being one of the major hurdles.

5. Google, Adobe and Oracle in tech spotlight

As Google-parent Alphabet (NASDAQ:GOOGL) revs up for its annual shareholder meeting on Wednesday, a group of shareholder activists plan to propose that the company breaks itself up before regulators force it to do so.

“We believe that shareholders could receive greater value from a voluntary strategic reduction in the size of the company than from asset sales compelled by regulators,” said the proposal from SumOfUs, a U.S.-based group that aims to curb the growing power of corporations

While it is highly unlikely that the proposal would succeed given the majority share owned by Alphabet’s top two executives, Larry Page and Sergey Brin, the proposal highlights the recent increase in antitrust investigations into large tech firms and the widening scope for misalignment between outside shareholders and the company's founders.

Also in focus in the tech sector, shares of Adobe (NASDAQ:ADBE) surged more than 4% in premarket trade Wednesday after reporting quarterly earnings that topped estimates. Oracle (NYSE:ORCL) is scheduled to release its own numbers after the market close.

-- Reuters contributed to this report.

Top 5 Things to Know in the Market on Wednesday
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
kotchakorn sudthoi
kotchakorn sudthoi Jun 19, 2019 7:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Good financial data
Eduardo Evardonie
Eduardo Evardonie Jun 19, 2019 6:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No coments
Peter Mafa
Peter Mafa Jun 19, 2019 12:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Will FOMC move the market
Abdulrazak Abubakar
Abdulrazak Abubakar Jun 19, 2019 9:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The report on oil will make oil price go bullish.
abcd abcd
abcd abcd Jun 19, 2019 7:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
will not cut rates until September. that's when he's stopping qe. it's not in hands of Powell.
Fred Smith
Fred Smith Jun 19, 2019 6:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Powell is just putting intrest rates back where they should have been
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email