Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Top 5 Things to Know in the Market on Thursday

EconomyAug 29, 2019 09:58AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com - Here are the top five things you need to know in financial markets on Thursday, August 29:

1. China confirms discussions for September trade meeting

China’s Commerce Ministry confirmed Thursday that Beijing and Washington were discussing the scheduling of face-to-face trade talks to be held in September in the U.S. Earlier comments overnight by Treasury Secretary Steven Mnuchin had not been as forthcoming.

Finance Ministry spokesperson Gao Feng repeated the call to “create conditions” for progress, saying discussions should focus on removing new tariffs to prevent escalation and resolve issues calmly.

2. U.S. futures jump on trade optimism

China’s confirmation of eventual trade negotiations and insistence on de-escalation appeared enough to send U.S. futures jumping higher.

European shares also turned higher after the comments, while Italy led gains after the country’s president gave Giuseppe Conte the green light to put together a new coalition of the 5-Star Movement and Democratic Party (PD), which analysts expect to work constructively with the EU on resolving their budget dispute.

Asian shares had closed slightly lower ahead of the Chinese Ministry’s remarks on trade.

3. Mnuchin considers longer-term bonds, rules out currency intervention

Mnuchin said the government is seriously considering extending its debt profile well beyond the current three-decade maximum.

A flight to safety has driven yields on U.S. Treasuries lower, while investors fret over the recent inversion of the rate on two-year government debt over that of the 10-year, a phenomenon that historically precedes a recession.

Heavy buying of the 30-year bond drove its yield to an all-time low earlier this week, amid it sharpest monthly decline since 2011.

Mnuchin also told Bloomberg that the U.S. was not considering intervention in currency markets to weaken the dollar despite President Donald Trump’s recent complaints about the greenback's strength.

4. U.S. economic growth in focus amid slew of data

The U.S. will release its revised reading of second-quarter gross domestic product at 8:30 AM ET (12:30 GMT) with forecasts for a downward revision to 2.0% from the initial 2.1%.

As ongoing trade conflicts dampen global growth, strong domestic consumption has kept the U.S. economy resilient.

Markets will also get a sense of the impact from the White House’s last tariff levy with the release of trade data for July. The goods trade deficit is expected to have narrowed slightly to $74 billion.

Weekly jobless claims will also be in focus as traders evaluate the solid U.S. labor market, while numbers on pending home sales for July will give insight into the state of real estate market in an environment of falling mortgage rates.

5. Further signs of Fed uncertainty

While markets discount a 25 basis point cut to interest rates at the next Federal Reserve policy meeting in September, policymakers themselves don't seem as sure.

Speaking after Thursday’s market close, San Francisco Fed President Mary Daly signaled support for additional easing, saying she believes the benefits of running a "hot" economy currently outweigh the potential costs.

Her colleague from the Richmond Fed, Thomas Barkin, however showed less enthusiasm, stating that he remained undecided. Unconvinced that subdued inflation was sufficient reason for further cuts, Barkin said he was focusing on growth, particularly abroad, and admitted that there was elevated uncertainty due to trade wars.

The Fed was divided in July over what to do with interest rates, with several policymakers opposed to cutting rates while a couple favored lowering them more aggressively than the quarter-point reduction that was approved.

Read more: Afraid Of Low Interest Rates? Bet On Top Quality REITs - Haris Anwar

-- Reuters contributed to this report.

Top 5 Things to Know in the Market on Thursday
 

Related Articles

Nasdaq set for lower open as Nvidia, Big Tech weigh
Nasdaq set for lower open as Nvidia, Big Tech weigh By Reuters - Dec 06, 2021 1

By Devik Jain (Reuters) - The Nasdaq index was set for a lower open on Monday as mega-cap technology firms slipped and shares of Nvidia (NASDAQ:NVDA) led declines among major...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other 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, don’t trash it.

  •           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. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. 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 Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
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.
Comments (3)
Hank Williams
Hank Williams Aug 29, 2019 11:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"To the moon Alice"
Andrew carson
Andrew carson Aug 29, 2019 7:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Extending the debt profile, what could go wrong? Hmmm.
Hanspeter Fuhrer
Hanspeter Aug 29, 2019 6:10AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sounds like a plan ...
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
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 Investing.com'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
or
Sign up with Email