US. Equities rose on Friday as risk-weighted assets continued to rise due to more cautious Federal Reserve communications.
The S & P 500 (^ GSPC) rose 0.14% or 4.1 points to reach a new record high of 3,004.29 points during the day. The Dow (^ DJI) rose 0.29% or 78.29 points, easily holding over 27,000 points. The Nasdaq (^ IXIC) climbed 0.21% or 16.99 points.
Domestic stocks were supported this week as US Federal Reserve Chairman Jerome Powell signaled to lawmakers that the central bank is ready to cut interest rates "The economy is in very good shape," said Powell on Thursday to the Senate Banking Committee. "We want to use our tools to keep them there."
Other Fed spokesmen this week opposed the idea of a short-term interest rate cut amid a still-strong US economy. Their comments, however, were little in line with market expectations for lower interest rates until the close of the central bank meeting in late July. Fed funds futures priced a 79.6 percent likelihood of a 25 bp interest rate cut after the Friday morning July session and a 20.4 percent chance of a 50 bps cut Atlanta downplayed the need for incentives on Thursday and said: "We are in a good position" in terms of the Fed's dual mandate to achieve maximum employment and stable prices. Thomas Barkin, president of the US Federal Reserve of Richmond, said to Bloomberg on Thursday, "I still feel pretty good about the economy," even though the risk is "a bit down."
Many Fed officials called multi-frontier trade disputes a big risk to the economy. The signals for the impact of trade volts at the global level continued to increase due to data released on Friday. China's export growth fell 1.3% yoy in June-less than expected by consensus economists-while imports fell 7.3% more than expected. Imports from the United States decreased by 31.4% yoy, while exports to the United States dropped by 7.8%.
Other major economies posted disappointing results for June. Singapore's export-dependent economy contracted by 3.4% q / q from April to June on an annualized and seasonally-adjusted basis, the largest quarterly decline in about seven years, and consensus expectations far lower than gains following a stronger-than-expected US inflation review Consumer price index on Thursday pushed the demand for longer-term government bonds. The 10-year yield rose 1.1 basis points to 2.113% from 7:41 am CET, close to a high for the month.
<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = " A measure of changes in producer prices in the US rose slightly more than expected on June, according to a Friday report from the Bureau of Labor Statistics. "Data-reactid =" 36 "> According to a report by the Bureau of Labor Statistics from Friday
In June, the measure of changes in US producer prices rose slightly more than expected] The leading price index (PPI) rose 0.1% month-on-month in June, in line with the previous month Tempo of the month of May. Last year, the main PPI rose 2.3% in June, compared to an expected pace of 2.1%. The cost of energy and other goods declined over the month, while the service price index rose by 0.4% in June, the largest increase since October 2018.
The PPI excluding food and energy prices – considered by many economists to be " The benchmark, which better tracks underlying price changes, rose 0.3% in June, faster than the expected increase of 0.2%. Excluding food and energy prices, the PPI rose 2.3% last year, compared to an expected 2.1%.
Excluding food, energy and trade services prices, the PPI remained flat month-on-month in June after rising 0.4% in May. Consensus economists had expected a rise of 0.2% for the month.
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