Looming Fed Announcement May Lead To Choppy Trading

[ADVFN]( [WorldDaily Markets Bulletin]( [Daily world financial news]( [Wednesday, 30 October 2019 11:12:50]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( [NASDAQ OPTIONS]( Ready to Trade the Top Nasdaq Options Superstars? You'll learn the Top 12 best stocks you should be trading with options right now. Plus, a step-by-step blueprint for setting up high probability trades using options in any market conditions. See how to trade options in under 10 minutes per day with minimal risk. [Download the Free Report Here]( --------------------------------------------------------------- US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are pointing to a roughly flat opening on Wednesday, with stocks likely to continue to experience choppy trading. Traders may stick to the sidelines ahead of the Federal Reserve?s highly anticipated monetary policy announcement this afternoon. The Fed is widely expected to cut interest rates by another quarter point, although traders will pay close attention to the accompanying statement for clues about the outlook for rates. The central bank is due to announce its latest monetary policy decision at 2 pm ET, followed by Fed Chairman Jerome Powell?s post-meeting press conference at 2:30 pm ET. With the Fed decision looming, the futures did not show much reaction to the release of some upbeat U.S. economic data. Stocks showed a lack of direction over the course of the trading session on Tuesday as traders seemed reluctant to make significant moves ahead of the Fed?s monetary policy announcement. The major averages eventually ended the day in negative territory, with the S&P 500 pulling back off Monday?s record closing high. The S&P 500 edged down 2.53 points or 0.1 percent to 3,036.89, the Dow dipped 19.26 points or 0.1 percent to 27,071.46 and the Nasdaq slid 49.13 points or 0.6 percent to 8,276.85. The choppy trading on Wall Street came as traders took a wait-and-see approach even though the Fed is widely expected to cut interest rates by another quarter point. CME Group's FedWatch Tool is currently pointing to a 97.3 percent chance that the Fed will lower rates by 25 basis points. Some negative sentiment was generated by a report from Reuters suggesting a phase one trade deal between the U.S. and China may not be signed by a summit in Chile next month. Selling pressure remained subdued, however, as a U.S. administration official noted a failure to sign the deal by the summit just means more time is needed. "Our goal is to sign it in Chile. But sometimes texts aren't ready," the official told Reuters. "But good progress is being made and we expect to sign the agreement in Chile." A mixed reaction to the latest batch of earnings news also contributed to the lackluster performance, with a notable drop by Google parent Alphabet (GOOGL) weighing on the tech-heavy Nasdaq. After the close of trading on Monday, Alphabet reported third quarter earnings that missed analyst estimates, hurt largely by higher operating costs. On the other hand, General Motors (GM) moved sharply higher after reporting better than expected third quarter earnings, although the auto giant also lowered its full-year earnings guidance. Food giant Kellogg (K) also showed a strong move to the upside after reporting better than expected third quarter results. In U.S. economic news, the Conference Board released a report showing consumer confidence unexpectedly edged lower in the month of October, although the drop came from an upwardly revised level in the previous month. The Conference Board said its consumer confidence index dipped to 125.9 in October from an upwardly revised 126.3 in September. Economists had expected the consumer confidence index to climb to 128.5 in October from the 125.1 originally reported for the previous month. Meanwhile, a separate report released by the National Association of Realtors on Tuesday showed another significant increase in pending home sales in the U.S. in the month of September. NAR said its pending home sales surged up by 1.5 percent 108.7 in September after spiking by 1.4 percent to a revised 107.1 August. Economists had expected pending home sales to climb by 0.9 percent. A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale. Despite the lackluster performance by the broader markets, oil service stocks showed a substantial move to the upside on the day. The Philadelphia Oil Service Index surged up by 2.6 percent to its best closing level in a month even though the price of crude oil for December delivery dipped $0.27 to $55.54. Significant strength was also visible among natural gas stocks, as reflected by the 2.3 percent jump by the NYSE Arca Natural Gas Index. Healthcare and chemical stocks also saw notable strength on the day, while semiconductor and retail stocks moved to the downside. --------------------------------------------------------------- [EagleFX]( EagleFX offers deep liquidity, leverage up to 1:500 and some of the best spreads in the industry. We offer 24/7 live customer service, charge no deposit or withdrawal fees, and process withdrawals within 30-minute or less. EagleFX is an online Forex & Crypto STP broker providing CFD trading on hundreds of assets and optimal trading conditions within the award-winning MT4 platform. [Open Account Now]( --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( U.S. economic growth slowed much less than expected in the third quarter, according to a report released by the Commerce Department on Wednesday. The Commerce Department said real gross domestic product increased by 1.9 percent in the third quarter after climbing by 2.0 percent in the second quarter. Economists had expected GDP growth to slow to 1.7 percent. Payroll processor ADP released a separate report showing U.S. private sector employment increased by slightly more than anticipated in the month of October. ADP said private sector employment climbed by 125,000 jobs in October compared to economist estimates for an increase of about 120,000 jobs. However, the report also showed private sector job growth in September was downwardly revised to 93,000 from the previously reported addition of 135,000 jobs. ?Job growth has throttled way back over the past year,? said Mark Zandi, chief economist of Moody?s Analytics. ?If hiring weakens any further, unemployment will begin to rise.? At 10:30 am ET, the Energy Information Administration is scheduled to release its report on oil inventories in the week ended October 25th. Oil inventories are expected to rise by 0.7 million barrels after unexpectedly falling by 1.7 million barrels in the previous week. At 2 pm ET, the Federal Reserve is due to announce its latest monetary policy decision, followed by Fed Chairman Jerome Powell?s post-meeting press conference at 2:30 pm ET. --------------------------------------------------------------- --------------------------------------------------------------- Stocks in Focus Shares of General Electric (GE) are moving significantly higher in pre-market trading after the conglomerate reported third quarter results that beat analyst estimates on both the top and bottom lines. Garmin (GRMN) is also likely to see initial strength after the GPS and fitness device maker reported better than expected third quarter results and raised its full-year guidance. On the other hand, shares of C.H. Robinson Worldwide (CHRW) may come under pressure after the trucking company reported third quarter results that missed estimates. Fast food company Yum! Brands (YUM) is also likely to move to the downside after reporting weaker than expected third quarter results. --------------------------------------------------------------- --------------------------------------------------------------- Europe European stocks have shown a lack of direction on Wednesday as earnings proved to be a mixed bag and the U.K. readies itself for a December 12 general election. As hopes over a potential U.S.-China trade deal wane, markets now brace for what seems almost assuredly to be a third rate cut in as many meetings by the Federal Reserve later today. While the German DAX Index is down by 0.3 percent, the U.K.?s FTSE 100 Index is just above the unchanged line and the French CAC 40 Index is up by 0.2 percent. Spanish bank Banco Santander has shown a notable move to the downside after the bank's third quarter net income fell by 75 percent. Credit Suisse has also moved lower after the Swiss bank said it expects headwinds from the "ongoing challenging geopolitical environment" to persist into the final quarter of the year. Retailer Next has also come under pressure after it blamed "unusually warm weather" for a slump in September sales. German banking major Deutsche Bank has also tumbled as it reported an 832 million-euro ($924.35 million) loss in the third quarter, partly due to costs for a major restructuring. On the other hand, Italian-American carmaker Fiat Chrysler has soared as it confirmed merger talks with French rival PSA. Peugeot shares have also jumped in Paris. Airbus reversed early losses to turn higher. The aerospace company cut its 2019 delivery target to roughly 860 aircraft from a previous forecast of 880 to 890 jets for the year. Smurfit Kappa Group has also climbed after reporting an 11 percent increase in EBITDA for the nine-month period ending 30 September 2019. Carmaker Volkswagen has risen after reporting a rise in profit before tax for the nine-month period and backing its full-year sales view. In economic news, German unemployment increased while the jobless rate remained unchanged in October, data from the Federal Employment Agency showed. The number of unemployed increased by a seasonally adjusted 6,000 after falling by 9,000 in September. Economists had forecast a monthly rise of 3,000. The jobless rate held steady at 5 percent in October, which was in line with expectations and near a record low. France's economy expanded more than expected in the third quarter on household spending and investment, while its major counterpart Germany is forecast to enter a mild recession. Gross domestic product climbed 0.3 percent sequentially, the same pace of growth as seen in the second quarter, the first estimate from the statistical office Insee revealed. The U.K. economy would be 3.5 percent smaller with the new Brexit deal compared to continued EU membership, the National Institute of Economic and Social Research said in a report. --------------------------------------------------------------- --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian stocks fell on Wednesday as hopes over a concrete U.S.-China trade deal faded and focus shifted to central bank meetings. The Federal Reserve is widely expected to cut interest rates by 25 basis points at the end of a two-day policy meeting later today, while the Bank of Japan's policy decision on Thursday is likely to be a close call on whether to unleash more stimulus or hold off for now. Chinese shares fell on doubts over the prospects of phase one of a U.S.-China trade deal. The benchmark Shanghai Composite Index shed 14.86 points, or 0.5 percent, to end at 2,939.32, while Hong Kong's Hang Seng Index ended down 119.05 points, or 0.4 percent, at 26,667.71. Japanese shares retreated as investors awaited the Fed's monetary policy decision later today and the Bank of Japan's policy announcement on Thursday. The Nikkei 225 Index dropped 131.01 points, or 0.6 percent, to 22,843.12 after reaching its highest level in more than a year the previous day. The broader Topix closed 0.2 percent higher at 1,665.90. Exporters ended broadly lower as the yen rose slightly after the release of robust retails sales data showing that retail sales in Japan climbed an annual 9.1 percent in September following the 1.8 percent gain in August. Honda Motor, Panasonic and Sony edged lower, while Canon rallied 2.1 percent. Market heavyweight Fast Retailing gave up 2.2 percent. Australian markets ended notably lower to snap a seven-session winning streak. The benchmark S&P/ASX 200 Index slid 55.90 points, or 0.8 percent, to 6,689.50, while the broader All Ordinaries Index ended down 53.80 points, or 0.8 percent, at 6,794.70. Mining stocks suffered heavy losses after the World Bank downgraded its outlook for energy and metal commodities prices, citing rising inventories and lower demand from China. Heavyweights BHP and Rio Tinto fell over 1 percent, while smaller rival Fortescue Metals Group lost 1.9 percent. Woolworths Group lost 1.4 percent. The supermarket giant said its review found it owes 5,700 staff about A$300 million in underpaid wages dating back over nine years. Afterpay Touch Group tumbled 3 percent on news it has expanded its presence in the U.K.'s buy now, pay later market by signing a deal with clothing and food retailer Marks and Spencer. On the other hand, Evolution Mining advanced 1.5 percent as gold prices firmed up on reports of a possible delay in a U.S.-China trade deal. Banks ANZ and Commonwealth declined around 1 percent each. Genworth Mortgage Insurance Australia shares soared 10.6 percent after the company posted a 30 percent rise in underlying second quarter net profits, citing improved conditions in the Australian property market. Property developer Stockland Corp. gained 1 percent. On the economic front, a government report showed that consumer prices in Australia were up 1.7 percent year-on-year in the third quarter of 2019, in line with expectations and up from 1.6 percent in the previous three months. Seoul stocks slipped into the red as investors fretted about a possible delay in a U.S.-China trade deal and awaited the Fed's interest rate decision. The Kospi ended down 12.42 points, or 0.6 percent, at 2,080.27. --------------------------------------------------------------- --------------------------------------------------------------- Commodities Crude oil futures are dipping $0.23 to $55.31 a barrel after slipping $0.27 to $55.54 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $1,493.10, up $2.40 compared to the previous session?s close of $1,490.70. On Tuesday, gold fell $5.10. On the currency front, the U.S. dollar is trading at 108.91 yen compared to the 108.89 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.1106 compared to yesterday?s $1.1112. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +1 888-992-3836. 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