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By Marc Jones
LONDON (Reuters) – Stocks floated on Wednesday as rising government bond yields kept the dollar stable as investors waited to see if this was the case The most powerful central banker The world would confirm or confuse the expectations of a rate cut in the US this month.
The broadest index of MSCI world stocks barely changed after three days of losses. The cautious start of Europe reflected rather the caution before the event than the course of the day.
London's FTSE () rose 0.2% and Paris () also rose after better than expected French industrial data. The German Dax () was down 0.1
Japan's Nikkei () was also lower and China's Blue Chips () barely moved as data showed that inflation remained subdued.
An alarming lack of inflation around the world is one of the reasons investors are counting on US Federal Reserve Chairman Jerome Powell showing a degree of caution on Wednesday before Congress 31st July, but no half point is proposed. They had indicated a 25% likelihood of an aggressive break before an optimistic US job report on Friday.
"I think the market is heading for a less guarded message from Powell than a few weeks ago," said Neil Mellor, senior strategist at the Bank of New York Mellon (NYSE). I thought the Fed would be down at 25 this month Cut base points – the first cut in the US since the financial crisis – but whether this continues is much less clear.
"The real interest is what happens afterwards," Mellor said. "If we talk about a stronger dollar, we have to take into account the comments of President Donald Trump last week, who said," Well, maybe we should start manipulating the dollar.
Overnight, President of the US Federal Reserve of Atlanta, Raphael According to Bostic, the central bank debated the risks and benefits of a "slightly hotter" US economy.
Meanwhile, US and Chinese trading officials on Tuesday led "constructive "Talking about trading by phone, White House economic adviser Larry Kudlow said."
Wall Street was duly prudent, with the Dow () plunging 0.08% while the S & P 500 () traded 0, 12% and the Nasdaq () gained 0.54%.
The slowdown in US interest-rate fever has resulted in bonds returning only a small portion of their rally, with yields on biennial government bonds rising their recent low from 1.666% to 1.917%, and European benchmark yields rose by around five basis points.
This in turn helped the basket of currencies rise from a June low of 95.843 to 97.5 00 rebounded.
The dollar also rose to 108.92 yen
The Mexican peso
The Canadian Dollar
Gold fell 0.3% to $ 1,393.68 an ounce as the dollar rallied.
Oil prices rose on tensions in the Middle East and news that US inventories had fallen for the fourth week in a row. Futures rose 64 cents to $ 64.80. rose 82 cents to $ 58.65 a barrel.
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