Wall Street higher in the run-up to the Fed meeting


The stock exchanges in New York are expected to open on Tuesday with a profit. Just like in Europe, the attention on Wall Street goes to President Mario Draghi of the European Central Bank (ECB) who said he was prepared to take more incentive measures. In addition, the interest rate decision of the Federal Reserve on Wednesday is especially looked forward to.
Draghi said that the ECB can take extra steps if economic expectations do not improve. Monetary instruments include interest rate cuts and buy-back programs, according to Draghi at the annual ECB forum in Sintra, Portugal. At the European stock markets, there was a positive response to Draghi’s words, while the euro fell in value. US President Donald Trump lashed out at Draghi accusing him of manipulating the euro to the detriment of the United States.

The Fed will start its two-day policy meeting on Tuesday. It is expected that the umbrella of US central banks will not adjust interest rates this time, but may well open the door for an interest rate cut later this year.

Facebook is in the spotlight after the unveiling of its own crypto coin. The cryptomunt will be named Libra and should be available in Messenger and WhatsApp from next year. Users can make purchases with it.

Boeing was able to report good news from the Paris aviation show. The first orders are received by the American aircraft manufacturer, including from Korean Air. Boeing is still struggling with the aftermath of the problems with the 737 MAX devices, which are being held to the ground worldwide for safety reasons after two disasters in a short time.

The steel sector on Wall Street may come under pressure due to a profit warning from steel producer Steel Dynamics. Other steel companies such as Nucor and US Steel can also go down.

On the macroeconomic front, it was reported that home construction in the US fell in May, while a slight increase was expected.

The markets in New York closed on Monday with mostly small pluses. The leading Dow-Jones index finished 0.1 percent higher at 26,112.53 points. The broad-based S&P 500 rose 0.1 percent to 2889.67 points and the Nasdaq tech fair was set 0.6 percent higher at 7845.02 points.

By: Abaigael Schlomski

Abaigael Schlomski is an accomplished economist and financial journalist with over a decade of experience in the industry. He is a regular contributor to EconomicInform, where he provides in-depth analysis and expert commentary on the latest economic trends and events. With a keen understanding of the financial markets and a talent for breaking down complex economic concepts for a general audience, Maurice is a trusted and respected voice in the field.

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