Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Global shares gain as Fed looms, pound rides new Brexit twists

Stock MarketsMar 19, 2019 05:59AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Traders work at Frankfurt's stock exchange in Frankfurt

By Marc Jones

LONDON (Reuters) - World shares inched toward their longest winning streak of the year on Tuesday ahead of a Federal Reserve meeting, while the pound kept calm after another dramatic twist in the Brexit plot bolstered bets on a lengthy delay to the process.

With traders expecting soothing sounds from the Fed's two-day meeting which starts later, Europe's early 0.2-0.5 percent gains lifted MSCI's 47-country world index for a seventh straight day and to its highest since October.

Asia had stuck to tight ranges during its session, but all three major Wall Street indexes were pointing up again after bank and tech stocks had helped extend the year's 20 percent charge for U.S. markets on Monday.

The dollar though was feeling the strain, skulking near a two-week low on the bets that with both U.S. and global growth now slowing the Fed will need to put its rate hike plans on ice.

"The market has priced that the Fed's next move will be a (rate) cut," said Liz Ann Sonders, chief investment strategist at Charles Schwab (NYSE:SCHW), adding that it may have to if U.S. data continues to sour and key indicators such as the U.S. yield curve start flashing warning signs again.

Investors will particularly look to see whether policymakers have sufficiently lowered their interest rate forecasts to more closely align their "dot plot", a diagram showing individual policymakers' rate views for the next three years.

Also expected is more detail on a plan to stop cutting the Fed's holdings of nearly $3.8 trillion in bonds.

"A key focus is when the Fed will omit the word 'patient' from its statement, as that would be a pre-requisite for a rate hike," said Toru Yamamoto, chief fixed income strategist at Daiwa Securities.

SPEAKER'S STATEMENT

In currency markets, sterling found some footing after slipping to as low as $1.3183 in the previous session as lawmakers cast doubt on Prime Minister Theresa May's third attempt to get parliament to back her Brexit deal.

May's Brexit plans were thrown into further turmoil on Monday when the speaker of parliament ruled that she could not put her divorce deal to a new vote unless it was re-submitted in fundamentally different form.

May has only two days to win approval for her deal to leave the European Union if she wants to go to a summit with the bloc's leaders on Thursday with something to offer them in return for more time.

Meanwhile, senior diplomats said the European Union leaders could hold off making any final decision on any Brexit delay when they meet in Brussels later this week, depending on what exactly May asks them for.

"The predominant notion adopted by the market is that as long as the worst case scenario of hard Brexit is avoided by delaying Brexit, the pound is a buy on dips," Rabobank strategists said in a note.

With dollar nudging down ahead of the Fed, the euro made some ground at $1.1347 and the Japanese yen inched up 0.1 percent to 111.28 yen to the U.S. currency.

Oil prices were near 2019 highs, supported by supply cuts led by producer club OPEC. U.S. sanctions against oil producers Iran and Venezuela are also boosting prices, although traders said the market may be capped by rising U.S. output.

U.S. West Texas Intermediate (WTI) futures gained 0.2 percent to $59.23 per barrel, while Brent crude futures rose to $67.97, also not far from this year's high of $68.14.

Global shares gain as Fed looms, pound rides new Brexit twists
 

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 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.
 
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