Economy
US Stocks Tread Water Following Last Week’s Lean Run; Analyst Says ‘Don’t Get Unduly Worried’
Stocks look set to start the week on a flattish note with a negative bias after the major averages snapped multi-week winning streaks on Friday. The insurrection in Russia turned a storm in a teapot, as it was quashed even before things went out of hand. Given the lack of any significant Main Street catalysts, stocks could tread waters before taking a decisive move forward.Cues From Past Week’s Trading:The major averages closed the week ended June 23 on a down note, as traders took profit of recent gains amid the release of weak economic data and the Fed’s warning of more rate hikes down the line.The S&P 500 and the Nasdaq Composite indices were down in three out of the four sessions of the truncated week. The former ended a five-week winning streak, while the latter snapped an eight-week positive run.The 30-stock Dow Industrials was down in all four sessions of the week and broke a three-week winning streak. Sentiment toward small-cap stocks was more negative, as reflected by the underperformance of the Russell 2000 Index. U.S. Indices’ Performance on FridayIndex Performance (+/-)ValueNasdaq 100-0.76%14,954.53S&P 500 Index-0.51%4,365.86Dow Industrials-0.45%33,794.19Russell 2000-0.86%1,832.17Analyst Color:An analyst said he is concerned despite the snapping of the upward momentum. “Don’t get overly worried, as the third week of June is historically one of the worst times of the year for stocks,” said Carson Group’s Ryan Detrick.”After the recent run they’ve had, weakness now is normal,” he added.Futures TodayFutures Performance On MondayFuturesPerformance (+/-)Nasdaq 100 -0.44%S&P 500-0.39%Dow-0.39%R2K -0.63%In premarket trading on Monday, the SPDR S&P 500 ETF Trust SPY slipped 0.08% to $432.87 and the Invesco QQQ ETF QQQ declined 0.12% to $362.09, according to Benzinga Pro data.Upcoming Economic Data:Consumer, manufacturing, and house price readings dominate the unfolding week’s economic calendar. The market may also receive a fair share of monetary commentary from Fed officials, including Fed Chair Jerome Powell.Dallas Federal Reserve’s manufacturing business index for June is due at 10:30 a.m. EDT. Economists, on average, expect the index to show contractionary activity, although improving slightly from May’s -29.1 to -26.5 in June.The Treasury will auction three- and six-month bills at 11:30 a.m. EDT and two-year notes at 1 p.m. EDT.See also: How To Trade FuturesStocks In Focus:
Tesla, Inc. TSLAfell % in premarket trading after Goldman Sachs became the third sell-side firm to downgrade the stock.
Apple, Inc. AAPL stock could be in focus as the company closes in on the $3 trillion market cap.
Virgin Galactic Holdings, Inc. SPCE rebounded by more than 3% following the stock’s 18.42%+ slump on Friday in reaction to its capital raise plans.
Carnival Corp. & plc. CCL is due to report its quarterly results ahead of the market open.
Commodities, Bonds, Other Global Equity Markets: Crude oil futures edged up 0.10% to $69.23 in early European trading on Monday. The commodity fell 365% in the week ended June 16.The yield on the benchmark 10-year Treasury note fell 0.047 percentage points to 3.692%.The major Asian markets moved to the downside on Monday as traders in the region reacted to the unenterprising lead from Wall Street overnight and concerns about lukewarm growth in China. The Shanghai Composite and the Shenzhen indices ended with losses of about 1.50% each.The Indonesian and South Korean markets bucked the downtrend by recording moderate gains.European stocks extended their losing streak to the sixth straight session as growth worries and fears about hawkish central bank stances weighed down on sentiment. The averages traded moderately lower in late-morning trading on Monday.Read Next: Cathie Wood Wonders What’s The Next Shoe To Drop, As Ark Invest Founder Blames Fed For Regional Banking, Commercial Real Estate
© Reuters. Russian Central Bank Governor Elvira Nabiullina attends a news conference in Moscow, Russia June 14, 2019. REUTERS/Shamil Zhumatov/File Photo
MOSCOW (Reuters) – Russia’s central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank’s governor Elvira Nabiullina told RBC media on Sunday.
The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over.
Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.
“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.
Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.
“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.
The bank will next convene to set its benchmark rate on Feb. 16.
The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.
© Reuters. FILE PHOTO: Workers walk past an under-construction area with completed office towers in the background, in Shenzhen’s Qianhai new district, Guangdong province, China August 25, 2023. REUTERS/David Kirton/File Photo
SHANGHAI (Reuters) – China’s top planning body said on Saturday it had identified a second batch of public investment projects, including flood control and disaster relief programmes, under a bond issuance and investment plan announced in October to boost the economy.
With the latest tranche, China has now earmarked more than 800 billion yuan of its 1 trillion yuan ($140 billion) in additional government bond issuance in the fourth quarter, as it focuses on fiscal steps to shore up the flagging economy.
The National Development and Reform Commission (NDRC) said in a statement on Saturday it had identified 9,600 projects with planned investment of more than 560 billion yuan.
China’s economy, the world’s second largest, is struggling to regain its footing post-COVID-19 as policymakers grapple with tepid consumer demand, weak exports, falling foreign investment and a deepening real estate crisis.
The 1 trillion yuan in additional bond issuance will widen China’s 2023 budget deficit ratio to around 3.8 percent from 3 percent, the state-run Xinhua news agency has said.
“Construction of the projects will improve China’s flood control system, emergency response mechanism and disaster relief capabilities, and better protect people’s lives and property, so it is very significant,” the NDRC said.
The agency said it will coordinate with other government bodies to make sure that funds are allocated speedily for investment and that high standards of quality are maintained in project construction.
($1 = 7.1315 renminbi)
© Reuters. Russian Central Bank Governor Elvira Nabiullina attends a news conference in Moscow, Russia June 14, 2019. REUTERS/Shamil Zhumatov/File Photo
MOSCOW (Reuters) – Russia’s central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank’s governor Elvira Nabiullina told RBC media on Sunday.
The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over.
Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.
“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.
Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.
“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.
The bank will next convene to set its benchmark rate on Feb. 16.
The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.
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