European indices trade lower today as investor’s attention turns to Jerome Powell speech later today looking for fresh trading impulse. The Fed may cut 25-basis-point to support the market in the near future, but a 50 basis-point cut I believe would be too much as the latest macro figures from USA surprises beating expectations. Markets have already discounted a 25-basis-point cut in July.
As of writing the DAX 30 is 0.92 percent lower at 12,427 the CAC 40 in Paris is 0.30 percent lower at 5,572, in London the FTSE 100 is 0.02 percent lower at 7,548. Earlier today a Bloomberg survey shows that the UK economy is forecast to have contracted in second quarter of 2019. That will be the first contraction in Great Britain economy since 2012. The projections are now for a 0.1% contraction, a downgrade from earlier prediction of stagnation, 0.0% in June. Earlier today the British Retail Consortium data for June came in worst than expected, down 1.6%, year over year for sales like-for-like. It was expected at -1.1%, year over year, while the previous reading was -3.0%.
In Wall Street, the futures trading lower, the Dow futures are 0.35 percent lower at 26,699 while the S&P futures are 0.37 percent lower, signaling a negative start for U.S. equities.Don’t miss a beat! Follow us on Twitter.