Stock Futures Indicate Lower Open This Morning Following FOMC Announcement That Rates Will Remain Unchanged
U.S. stock futures are lower. Stock futures indicate a lower open this morning following the announcement by the FOMC that rates will remain unchanged as expected. The committee reiterated concerns about inflation risks, suggesting that rate cuts are not expected for a few years. In what is being viewed as a "hawkish skip," the Summary of Economic Projections revealed that committee members anticipate two more rate hikes by the end of the year. This morning's economic data releases have been a mixed bag. While the Philadelphia Fed Manufacturing Index is showing signs of improvement, it still remains in contractionary territory. Initial jobless claims were higher than anticipated, matching last week's figure of 262k and surpassing the estimated 250k. May Retail Sales unexpectedly increased by 0.3%, against expectations of a 0.2% decline. In global markets, Asian markets closed mostly higher as China continued to cut bank policy rates. Conversely, European markets are trading lower as ECB President Christine Lagarde delivers her remarks following a 25 basis point rate hike announcement. Crude oil prices are on the rise, while gold is experiencing a pullback and the value of the Dollar remains steady.
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