U.S. stocks steady; Cook’s dismissal, Nvidia earnings in spotlight
* Fed likely to leave rates steady, despite market outlook
* MSCI global stocks index hits six-week high
* Fed decision comes after ECB's Draghi hints at stimulus
* Benchmark yields rise after day-earlier tumble
(Updates with open of U.S. markets; changes dateline, previous
LONDON)
By Lewis Krauskopf
NEW YORK, June 19 (Reuters) - A gauge of global stock
markets gained modestly on Wednesday to reach six-week highs and
benchmark government bond yields rose from multiyear lows as
investors awaited a decision on monetary policy from the U.S.
Federal Reserve later in the session.
Investor hopes that the Fed would soon cut interest rates
were fed on Tuesday when European Central Bank President Mario
Draghi hinted at economic stimulus, comments that drove up
stocks and weakened yields. The Fed is due to give its policy statement at 2 p.m. EDT
(1800 GMT) followed by a news conference from Chairman Jerome
Powell, and "there's not a lot of incentive for traders to be
really directionally betting" ahead of time, said Mark Hackett,
chief of investment research at Nationwide.
The Fed is expected to leave rates on hold at Wednesday's
meeting, but the market is factoring in a cut as soon as next
month. "Equity markets have already placed their bets," Hackett
said. "The issue is Powell needs to reinforce that."
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.37%.
The Dow Jones Industrial Average .DJI rose 37.65 points,
or 0.14%, to 26,503.19, the S&P 500 .SPX lost 0.79 points, or
0.03%, to 2,916.96 and the Nasdaq Composite .IXIC dropped 9.64
points, or 0.12%, to 7,944.25. The pan-European STOXX 600 index .STOXX lost 0.05%.
Aside from Draghi's comments, equity markets got a boost on
Tuesday when U.S. President Donald Trump confirmed he would meet
with Chinese counterpart Xi Jinping at next week's G20 meeting,
as the two sides rekindled trade talks. U.S. Treasury yields rose on Wednesday, tracking the
European market after steep falls the previous day, as investors
rebalanced positions ahead of the Fed decision. Benchmark 10-year notes US10YT=RR last fell 10/32 in price
to yield 2.0906%, from 2.058% late on Tuesday.
U.S. benchmark 10-year yields on Tuesday fell to their
lowest since early September 2017. German yields climbed after
falling deep into negative territory on Tuesday.
"People are mostly position-squaring ahead of the Fed
today," said Justin Lederer, Treasury analyst at Cantor
Fitzgerald in New York. "Everything in some shape or form will
change at 2 p.m. when the Fed announces its decision."
The dollar index .DXY fell 0.17%, with the euro EUR= up
0.16% to $1.1209.
U.S. crude CLcv1 rose 0.35% to $54.09 per barrel and Brent
LCOcv1 was last at $62.29, up 0.24% on the day.
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S&P500 approaches record high https://tmsnrt.rs/2Y7dDQE
Multiverse bond index https://tmsnrt.rs/2Y0uHbg
German, US bond yields in sharp falls this year https://tmsnrt.rs/2Y7buo4
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