Breaking News

Top 5 Things To Know In The Market On Thursday

EconomyJun 14, 2018 05:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Top 5 things to know today in financial markets - Here are the top five things you need to know in financial markets on Thursday, June 14:

1. ECB Day

In what has become one of the most keenly anticipated meetings in a long time, the European Central Bank (ECB), meeting in Riga, Latvia, is likely to signal that its €2.5 trillion easing program will end this year, a key move in dismantling crisis-era stimulus.

Investors had initially expected the central bank to wait until its July meeting to begin making such decisions. But policymakers recently suggested they will look past Italy's political problems in their debate on when to end bond purchases.

Any changes to asset purchases or the central bank's policy guidance should appear in the ECB policy statement at 1145 GMT (7:45AM ET). More details, including latest economic forecasts would follow at ECB chief Mario Draghi's press conference 45 minutes later.

The euro nudged up around 0.3% to 1.1820 against the dollar, while government bond yields in the euro area were also higher.

2. U.S. Stocks Set To Open Lower Amid Fed Fallout

U.S. stock index futures pointed to a lower open Thursday morning, as investors continued to digest comments from the Federal Reserve.

At 5:30AM ET, the blue-chip Dow futures slipped 20 points, or around 0.1%. The Nasdaq and the S&P 500 futures also indicated a lower start to the session for their respective markets.

The moves in pre-market trade came after the Fed hiked interest rates for the second time this year and took a slightly more hawkish policy tone in signaling two additional rate hikes by year-end.

The Dow fell about 120 points on Wednesday, while the S&P 500 and Nasdaq also ended lower.

The earnings calendar will be pretty empty, with Adobe Systems (NASDAQ:ADBE) the only notable company reporting results.

On the data front, there will be weekly jobless claims as well as retail sales for May both due at 8:30AM ET (1230GMT).

Elsewhere, in Europe, most of the continent's major bourses declined in cautious mid-morning trade, with all sectors trading in negative territory.

Earlier, Asian markets closed mostly lower, mirroring overnight losses on Wall Street.

3. Dollar Slides As Fed-Driven Surge Fades

The dollar was under pressure, giving up gains made after the Fed raised interest rates and struck a more hawkish tone by forecasting a slightly faster tightening.

As widely expected, the Fed raised its benchmark overnight lending rate a quarter of a percentage point to a range of 1.75%-2% on the back of strong U.S. economic growth.

Fed policymakers' rates projections pointed to two additional hikes by the end of this year compared to one previously, based on board members' median forecast.

The dollar index against a basket of six major currencies dipped 0.3% to 93.30 after briefly rising to 94.04 on Wednesday.

Against the yen, the dollar last traded at 109.95, down almost 0.4%, having lost steam after hitting a three-week peak of 110.85 shortly after the Fed's latest policy statement.

Meanwhile, the 10-year U.S. Treasury yield stood at around 2.95%, pulling back from a three-week high of 3.01%.

4. U.S.-China Trade Concerns Back In Focus

Fresh concerns about U.S.-China trade relations returned to the forefront.

U.S. President Donald Trump will meet with his top trade advisers on Thursday to decide whether to activate threatened tariffs on billions of dollars in Chinese goods, a senior Trump administration official said.

Trump is due to unveil revisions to his initial tariff list targeting $50 billion of Chinese goods on Friday. People familiar with the revisions said that the list will be slightly smaller than the original, with some goods deleted and others added, particularly in the technology sector.

The world's two largest economies have threatened each other with tens of billions of dollars' worth of tariffs in recent months, leading to worries that Washington and Beijing may engage in a full-scale trade war that could damage global growth and roil markets.

5. 2018 FIFA World Cup Kicks Off

The 2018 FIFA World Cup tournament kicks off later today, when host nation Russia takes on Saudi Arabia in a Group A match at the Luzhniki Stadium in Moscow. It has a 6:00PM start time in Moscow, which means 11AM ET.

This is the only game that takes place on the opening day of the World Cup as the competition really gets going on Friday, with three matches including a Group B clash between Portugal and Spain.

The tournament ends on Sunday, July 15, which is the day of the final.

Most experts suggest defending champion Germany as having the highest likelihood of winning the cup, while Brazil, France, Spain and Argentina are also expecting to reach the late stages.

In terms of impact on the market, analysts have warned that trading volumes on major international stock exchanges are likely to decline during the month-long tournament.

Top 5 Things To Know In The Market On Thursday

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Maher Khamissy
Maher Jun 14, 2018 4:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Very passive guy... Euro is dying
0 0
Nurdin Yusuph
Nurdin Yusuph Jun 14, 2018 6:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
0 0
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email