Breaking News
0

Top 5 Things to Know in the Market on Wednesday

EconomyAug 28, 2019 06:13AM 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, August 28:

1. Pound slides on reports of extended recess for U.K. Parliament

The pound slid against the dollar and euro after Prime Minister Boris Johnson announced he had requested Queen Elizabeth to suspend parliament from Sept. 9 to Oct. 14.

The move was hailed as a tactic to curtail parliamentary procedures that could lead to legislative changes that would prevent the U.K. from leaving the European Union on Oct. 31 without a deal, known as a “hard Brexit”.

2. 30-year Treasury yield hits record low

The yield on the 30-year U.S. Treasury bond hit a record low, keeping markets on edge as they watch current yield curve inversions.

The 30-year yield fell below that of 3-month paper a day earlier for the first time since 2007, meaning that investors were willing to loan the U.S. government money at a lower rate for the longer-term bond.

The more closely followed premium on the 2-year over the 10-year, considered a precursor for recession, reached 6 basis points, a spread also not seen since 2007.

The 2-year rate has passed that of the 10-year ahead of every recession over the past 50 years. On average, yield curve inversion comes 22 months ahead of the impending recession, according to Credit Suisse.

3. U.S. futures steady despite yield curve inversion

U.S. futures held steady, managing a slight bounce after a triple-digit decline in the Dow in the prior session.

Traders appeared to have taken a pause from concerns over the yield curve inversion, while Sino-U.S. trade tensions were put on the back burner as markets awaited the next round of tariffs.

Washington will apply the first stage of U.S. tariffs on $300 billion worth of Chinese goods on Sunday, just ahead of the Labor Day holiday while Beijing will enact its retaliatory tariffs on the same day.

On the earnings front, Tiffany (NYSE:TIF) and Brown-Forman (NYSE:BFb) were among companies set to report ahead of the open, while Box (NYSE:BOX) and Five Below (NASDAQ:FIVE) will be on tap after the close.

Mixed readings came from reports released after Tuesday’s close. Shares in Autodesk (NASDAQ:ADSK) tumbled 11% in premarket trade after issuing a cautious forecast, while Hewlett Packard Enterprise (NYSE:HPE) jumped nearly 6% as it raised its full-year guidance.

Read more: 3 Stocks Set To Outperform As The U.S.-China Trade War Escalates - Jesse Cohen

4. Fedspeak in focus for clues on easing

As uncertainty over whether the U.S. and China will resume trade talks dominates market direction and supports the Federal Reserve’s dovish monetary policy stance, investors will have the opportunity to hear from policymakers for further signs the U.S. central bank will cut its benchmark rate next month.

Richmond Fed President Thomas Barkin will speak at 12:20 PM ET (16:20 GMT); while San Francisco Fed chief Mary Daly will speak at 5:30 PM ET (21:30 GMT).

Expectations for an aggressive Fed rate cut at the central bank’s next meeting were dented by better-than-expected consumer confidence data on Tuesday, suggesting the U.S. economy remains on solid footing.

5. Oil gains on inventory draw, EIA data on tap

Oil prices were on the rise after the American Petroleum Institute reported late Tuesday that U.S. crude stockpiles plummeted by 11.1 million barrels last week.

Official government data from the Energy Information Administration will be released at 10:30 AM ET (14:30 GMT) with U.S. crude inventories forecast to fall by just 2.1 million barrels. If the EIA confirms API’s reading, that would be the largest decline in nine weeks.

-- Reuters contributed to this report.

Top 5 Things to Know in the Market on Wednesday
 

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
Tu Nguyen
Tu Nguyen Aug 28, 2019 11:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
y'all need to do research on tariffs and history of it to understand why this is happening. I'm tired of reading these absurd comments especially the ones with chinese names. ignorance is not a virtue.
Hank Williams
Hank Williams Aug 28, 2019 9:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
We have a real estate agent in the White House.
Hank Williams
Hank Williams Aug 28, 2019 9:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Any of you rocket scientists on WS please explain how any trade deal is not going to mean higher prices for consumers. Thank you.
Jun Man
Jun Man Aug 28, 2019 8:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump is a win lose vs win win negotiator. He's not satisfied unless his opposition is obliterated.
Ryan Droege
Ryan Droege Aug 28, 2019 7:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why cant/won't China/US simply install equal tariffs, or remove all of them. Why is it so hard to figure out?
Show previous replies (2)
Van Doza
Van Doza Aug 28, 2019 7:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Meanwhile, globalists invest in LT USG bonds (why? ST bonds are now paying better) The reason is they want to use their cohorts in the media to pump up the whining narrative about a so-called "yield inversion" being a 22-month harbinger of recession. Some folks will pay a big price to see Trump's chances fall ahead of the 2020 election. Remember: they see themselves as something other than citizens of a particular country.
Al Vlaj
alvlaj Aug 28, 2019 7:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Van Dozaand yet ironically, Trump wants lower rates? Why? People cant borrow at the overnight rate. The only reason one would want that is to lower long term borrowing costs, which are happening because of the expectation that rates will be lowered. This is what Trump should want, no? It’s happening isnt it? The problem is that lower rates by the Fed are usually only done to stave off a recession an heat up and economy as needed. Make no mistake, Trump was handed a phenomenal economy and is slowing it with his policies.
Nathan Dunn
Nathan Dunn Aug 28, 2019 7:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
alvlaj Exactly, the smart thing would've been to work with our allies (something Trump hates for some reason) in order to get China to change some things. This unilateral approach with escalating tariffs is counterproductive and only serves as a self-inflicted wound on our own economy, both business AND consumers. Trump can't afford to keep going in this direction or the economy will fall, and China of course knows this. My guess is he will back off, cut a very modest deal with China, and call it a great victory...but will his ego let him do it before it's too late.
Zoltan McVeigh
Zoltan McVeigh Aug 28, 2019 7:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Can you give specifics about how phenomenal the economy was?
Al Vlaj
alvlaj Aug 28, 2019 7:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Zoltan McVeighbrought the unemployment rate from a peak of 10% to 4.8%. Created 11.8mm jobs. Median household income up5.8% annually. Real weekly earnings up 4.0% annually. Home prices up 20%. Poverty rate down 0.5%. Corporate profits up 57%. S&P up 166%. DJT was handed the wheel while in pole position.
Ross River
Ross River Aug 28, 2019 6:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If the UK believe to Trump as he make a good trade. OK, let them to do it! But i do not believe so!
 
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