Market participants will closely monitor the press conference with Chair Jerome Powell
US stocks closed higher on Monday, with investors shifting focus to a Federal Reserve meeting due on Wednesday. The central bank is widely expected to keep the borrowing cost unchanged, so market participants will closely monitor the press conference with Chair Jerome Powell. The S&P 500 rose 0.32% overnight, while the Nasdaq Composite added 0.35% and the Dow Jones gained 0.38%. For the month, the Dow is set to finish April down more than 3.5%, while the S&P 500 and Nasdaq Composite are down more than 2% both. In individual stocks, Tesla jumped more than 15% after clearing a key hurdle for full self-driving technology in China.
Similarly, Asian equities were mostly higher on Tuesday, with MSCI’s broadest index of Asia-Pacific shares outside Japan gaining 0.36%. Japan’s benchmark Nikkei 225 jumped 1.17%. Sydney’s S&P/ASX 200 rose 0.35%, South Korea’s Kospi added 0.17%. In Hong Kong, the Hang Seng index edged up 0.24%, while the Shanghai Composite bucked the trend to shed 0.26% after the data showed that China’s manufacturing and services activity both expanded at a slower pace in April.
European stocks opened mixed today as investors were getting cautious ahead of fresh earnings figures and major data releases in the region. Preliminary euro zone inflation data for April and first-quarter gross domestic product figures are due later today. Despite the latest bounce, regional indices are still set to end the month lower. The DAX is down roughly 2% and CAC 40 down 1.5% in April trading. US stock index futures were little changed in early pre-market trading as market participants await fresh earnings, the latest Fed meeting, and a jobs report.
Meanwhile, the US dollar keeps oscillating around the 106.00 figure these days. The USD index turned positive on Tuesday after a slide witnessed during the previous session. The key immediate barrier now arrives in the 106.10 area while on the downside, the 105.40 region represents a significant local support zone. A failure to hold above this area in the coming days would bring more bearishness into the game. USD bulls expect the Fed to a hawkish message on rates and thus push the greenback higher across the board.