Tuesday, 18 June 2019

Markets little-changed as investors look for rate cuts

Markets were little-changed on Monday.

The S&P 500 rose 0.1 percent, the STOXX Europe 600 fell 0.1 percent and the Nikkei 225 was flat.

US economic data on Monday disappointed.

The Empire State manufacturing index plummeted 26.4 points to minus 8.6 in June, a record decline. Economists had expected a reading of plus 10.

The National Association of Home Builders's home-builder confidence index fell two points to 64 in June, worse than economists’ consensus forecast of a one-point increase.

The data would have added to concerns of slowing economic growth in a week when the Federal Reserve is due to meet on monetary policy.

Mark Newton, technical analyst at Newton Advisors, wrote in a research note that “while a lowering of rates has not been priced in by the market for Tuesday, such a move is expected by July, and failure to do so would be a surprise to markets”.

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