LIVE MARKETS-Not so fast! A case for caution on U.S. rates
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters
stocks reporters and anchored today by Julien Ponthus. Reach him on Messenger to share your
thoughts on market moves: julien.ponthus.thomsonreuters.com@reuters.net
NOT SO FAST! A CASE FOR CAUTION ON U.S. RATES (0725 GMT)
While some traders are now betting that the Fed will squeeze in a fourth rate hike this
year, will these expectations really sink in and become the new consensus?
According to CMC Markets (LSE: CMCX.L - news) ' Michael Hewson, there is a case for caution here as the American
economy may not be rising as fast as it currently seems.
"There is an argument that we could be heading for further softness, which might cast doubt
on U.S. rate expectations this year, if sustained", he argues, noting recent "economic data
suggests that the US economy could well be heading for a bit of a soft patch".
An answer might be given this afternoon with U.S. GDP data (1330 GMT).
(Julien Ponthus)
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EUROPEAN STOCKS FUTURES OPEN LOWER (0703 GMT)
Down it is, but nothing dramatic as the worst losses at the moment (that's the FTSE and
IBEX) are limited to 0.5 percent:
(Julien Ponthus)
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MORNING CALL: EUROPE SEEN OPENING LOWER AFTER POWELL SPOOKS WALL STREET (0625 GMT)
Good morning from snowy London!
European shares are expected to open lower, following the trend set by U.S. stocks, which
suffered their biggest daily drops since the early February selloff after Fed Chairman Jerome
Powell revived (not necessarly willingly) fears about fast rising interest-rates.
In Asia, shares extended losses and bonds were sold off as weak factory data from China
revived worries about global economic growth.
In Europe, there will be plenty of companies reporting annual results this morning to
animate the session.
Financial spreadbetters expect London's FTSE to open 53 points lower, Frankfurt's DAX to
open down 82 points and Paris' CAC to lose 35 points.
(Julien Ponthus)
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