US futures drop; European shares waver ahead of Fed minutes release, key G20 summit US stocks jump the most in 8 months after dovish Fed spurs speculation on easing rate tightening NASDAQ outperforms peers but executes Death Cross Treasury yields slide, USD gains ground Key Events
Futures on the , and dropped and European shares gave up earlier gains this morning as multiple headwinds seemed to cloud investor sentiment ahead of a crucial G-20 summit kicking off in Argentina tomorrow. The stakes of the summit are running high, with the meeting between US President Donald Trump and Chinese leader Xi Jinping poised to carry far-reaching implications for global markets.
The initially climbed, with all sectors in positive territory, after Fed Chair ’s dovish comments on Wednesday boosted market confidence over a slower pace of interest rate tightening. However, the pan-European benchmark later wavered around neutral levels, suggesting market narrative was shifting to risk-off mode.
Earlier, China’s (-1.32 percent) and Hong Kong’s (-0.87 percent) turned gains into losses.
Global Financial Affairs
Yesterday, US stocks jumped to the most in eight months closing at the session’s high after Powell said that interest rates are “just below” the range of a neutral policy, suggesting the path to higher borrowing costs will slow down or potentially even pause. Eurodollar futures now show the market is only —the equivalent of one rate hike—for next year.
The (+2.3 percent) was pushed higher by shares(+3.5%), while defensive stocks in the sector (-0.07%) fell out of favor. Technically, prices stopped below the 200 DMA.
Both the (+2.5%) and the (+2.43%) advanced, showing that the trade narrative was not the main market driver.
NASDAQ Composite Daily Chart
The (+2.95%) outperformed its peers, after a six-week slump. However, it executed a Death Cross, as the 50 DMA