Here are the top five news to follow the financial markets this Wednesday, July 13:
1. Theresa May ready to settle
The current Secretary of State for Internal Affairs Theresa May will be officially appointed as prime minister later in the day, by far accelerating the pace of a procedure that would not be completed before September 9.
The pound has strengthened this Wednesday, and is set to enjoy the best performance of the last two months, as investors awaited the appointment of May and later that of his ministers.
The focus will be the appointment of the so called “Tsar for Brexit” which will have the task of managing the negotiations after the decision of the UK to leave the European Union.
2. Mixed World Titles, breather after recent surges
The global equities are mixed on Wednesday after a surge due to recent economic data and the choice of a new British Prime Minister.
Asian equities touch the highs of 2016, supported by hopes of accommodative monetary policies.
European stocks opened down, as investors remain cautious ahead of the monetary policy meeting of the Bank of England scheduled for tomorrow, although it offered some support to decrease political instability.
In the US, equity markets pointed to a stable opening this Wednesday, with the Dow and the S & P that touch all-time highs in the previous session. At 9:57 AM GMT, or 5:57 AM ET, the Dow futures blue-chip marked +6 points, or + 0.03%, the S & P 500 futures marked +2 points, p + 0.07%, while the Nasdaq futures 100 marked + 0.13%.
3. Expected other interventions by the Fed, expectations of stable markets
It continues even today the number of interventions by the Fed’s personality, with investors looking for an indication of upcoming monetary policy decisions.
After the market close, the president of the Minneapolis Fed Neel Kashkari said that there is no urgency to raise rates seen low levels of inflation, while the president of the Cleveland Loretta Mester Fed reiterated that it is too early to assess the effect of the US economy Brexit.
Both the president of the Dallas Fed President Robert Kaplan of the Philadelphia Fed Patrick Harker held the interventions in the day.
On Tuesday, the Fed funds futures had given to 98.8% the probability of the decision to keep rates unchanged during the summit of 26 to 27 July, while the probability of a 25 basis point cut was 1.2%.
According to the instrument FedWatch Tool of the CME Group, the markets were only given to 48.3% the probability of rate hikes during the December summit.
4. weak data from Japan and China
Today ilgoverno Japanese has revised downwards its growth and inflation forecasts for the current year.
For 2017, it is expected to increase by 1.4% in consumer prices, highlighting the difficulty the Bank of Japan to achieve the target of 2% inflation.
Growth forecasts have been revised downwards to 0.9% for the current fiscal year, compared to the January projection of 1.7%.
This morning data showed that Chinese exports fell by 4.8% in June, compared to the previous year, while imports fell by 8.4% on an annual basis.
5. Crude falling, expected weak data on US stocks
Crude oil prices fell in European morning on Wednesday, amid speculation that the weak data in the session showing an unexpected increase in inventories last week, fueling fears about the excessive levels of inventories.
Yesterday, at the close of the markets the American Petroleum Institute said that the US crude inventories unexpectedly rose by 2.2 million barrels in the week ending July 8, completely beating analysts’ forecasts of a decline of 3 million.
The U.S. Energy Information Administration will release the weekly report on crude oil stockpiles at 14: 30GMT, or 10:30 AM ET, in expectation of a decline of 2.95 million barrels.
US crude futures signaled a 1.26% decline to $ 46.21 at 9:58 AM GMT, or 5:58 AM ET, while Brent crude fell 1.61% to $ 47.69.