Stocks move higher as Asian markets price in Fed cut
US and Asian stocks both gained after the probability of a Fed rate cut increased following comments made by Fed chair Powell at his testimony to the Senate yesterday. Powell cited the trade war, disappointing factory activity and low inflation to justify his comments. The Nikkei 225 rose 0.51%, ASX moved 0.39% but the Shanghai Comp. dropped to just under flat.
Commodities had a great session yesterday after the greenback lost valued following Powell's comments. Gold ripped 1.52% higher yesterday despite the movement in stocks and this morning the yellow metal trades 0.15% higher.
Oil also managed to trade higher yesterday and spot WTI moved up 3.31% following the draw in DoE inventory levels. The latest reading confirmed Tuesday nights API reading by producing a draw of 9.499mln vs the expected draw of 3.081mln.
Even copper managed to break higher and bounced off the previous wave lows to move 2.36% higher. The previous day's trade negotiation comments coupled with the weak USD spurred the industrial metal.
Today we get CPI from around the Eurozone, ECB minutes, US CPI and comments from ECB's Coeure, Fed's Powell, Williams, Bostic, Barkin, Quarles and Kashkari.