Global equities edged lower amid lower possibility for interest rates cuts | Finance and Markets

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Global stocks are trading mostly with declines ahead of the Fed governor Jerome Powell speech. The positive performance of Asian stocks did not extend to Europe and the US, where equities are trading mostly into the red.

The markets are focused on the testimony of the Fed governor Jerome Powell later today. He will talk to the Financial Services Committee on the US labor market data for June and the likelihood of lower interest rates at the end of the month.

A number of analysts are no longer looking so optimistic about the two-day Fed meeting at the end of the month, as positive employment data in the United States over the past month has dampened hopes of lowering key interest rates before the end of the summer.

Asian markets recap

The indexes in the Asia-Pacific region ended today’s trading session into the green amid the comments by US Federal Reserve Governor Jerome Powell on recent data on the US labor market in June.

In China, the mainland index Shanghai Composite showed a decline of 0.44% to 2,915.30 points. The Hong Kong’s benchmark Hang Seng advanced by 77.30 points, or 0.27%, to 28,193.58 points. Chinese consumer price index (CPI) is growing by 2.7% in June on an annual basis, meeting the expectations of analysts. The drop in pigmeat supplies due to the boom of African plague continues to push food prices up. In June, growth reached 8.3%.

In Japan, the blue-chip index on the Tokyo Stock Exchange, Nikkei 225, fell by 0.15% to 21,533.48 points. The stocks of the carmaker Toyota rose by a minimum 0.02%, while Sony Corporation wiped out 0.51% of its value. The best performers of the session were The Chiba Bank (+3.83%), KDDI Corp (+2.35%) and NEC Corp (+2.33%), while on the flipside were Showa Denko K.K. (-3.16%), Tosoh Corp (-2.62%) and Mitsui Mining and Smelting (-2.61%).

Nikkei 225

The South Korean index Kospi rose by 0.33% to 2,058.78 points. The shares of Posco and SK Telecom declined by 1.61% and 1.81%, respectively.

In Australia, the local S&P ASX 200 added 24.10 points, or 0.36%, to 6,689.80 points.

European markets mid-session recap

European shares were subdued on Wednesday despite the strong industrial output data from France and Italy, which are only limiting losses. The pan-European shares index Stoxx 600 fell 0.24% to 387.00 points. Bank shares outperformed major European sectors, with a 0.8% gain.

German index DAX 30 is down by 57.61 points, or 0.46%, to 12,378.94 points at 10:00 GMT. The country’s 10-year government bond yield rose to its highest since July 1, boosted by data that showed French industrial output in May. Banking stocks are on the rise with Deutsche Bank adding 2.3% and Commerzbank growing by 4.14%. The stocks of chemical giant BASF continue to edge lower and today are trading down by almost 1%.

DAX 30

French index CAC 40 edged lower by 0.11% to 5,565.93 points. The country’s industrial output surged in May, indicating the euro area’s second-largest economy resisted a downturn in manufacturing in the currency bloc. Industrial production jumped by 4% YoY, the most since 2017 and beating even the most optimistic prediction of the economists. The monthly number was the best reading since 2016. The stocks of the planemaker Airbus rose 0.9% after confirming deliveries rose by 28% in the first-half of the year, putting it ahead of Boeing for the first time in eight years.

British index FTSE 100 is down by 0.2% to 7,521.58 points. The stocks of the recruiter Hays Plc slid by 6.6% as peer Pagegroup tumbled 13.7% after issuing a profit warning. Shell and BP provided the biggest boost as crude prices firmed following industry data showing US stockpiles fell far more than expected. Miners added 0.8% as nickel prices scaled a 3-month high on signs of improvement in US-China trade talks.

Wall Street pre-session recap

The US stock index futures were lower on Wednesday morning, falling for a fourth straight session, as market participants eagerly anticipated comments from the world’s most powerful central banker.

Around 6 a.m. ET, Dow futures indicated a negative open of more than 70 points. Futures on the S&P and Nasdaq were both seen lower.

The markets will focus on the weekly jobless claims were expected at 7 a.m. ET.

In the corporate news, AngioDynamics and MSC Industrial Direct are both set to report their latest quarterly earnings before the opening bell.