Wall Street was set to open slightly lower on Wednesday as worries of a protracted U.S.-China trade war was heightened by Washington’s tough stance, but losses were limited by tame inflation data that supported the case for an interest rate cut.
FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., May 23, 2019. REUTERS/Brendan McDermid 12 Jun 2019 09:21PM(Updated: 12 Jun 2019 10:38PM) Share this content
REUTERS: Wall Street’s main indexes dipped on Wednesday as worries of a protracted U.S.-China trade war were heightened by Washington’s tough stance, but losses were limited by a tame inflation report that supported the case for an interest rate cut.
Data showed consumer prices edged up 0.1per cent in May, in line with expectations of economists polled by Reuters and pointed to moderate inflation. Excluding the volatile food and energy components, the CPI nudged up 0.1per cent.
“We’re not seeing much signs of creeping inflation, or at least increasing inflation. That’s one of the things that gives the Federal Reserve to think about lowering rates later this year,” Art Hogan, chief market strategist at National Securities in New York.
“This is a market that would love to see us get back to the negotiating table. The longer these trade tensions last, the most damage it’ll do to the economy, and therefore to earnings.”
Fresh worries erupted on the trade front after President Donald Trump said he was holding up a deal with China and had no interest in moving ahead unless Beijing agrees to four or five major points.
With under three weeks to go before proposed talks between the United States and Chinese leaders, sources say there has been