New York Equities Outlook: Little Movement Before Rate Decision | 06/15/21

NEW YORK (dpa-AFX) – The wait for the US Federal Reserve’s interest rate decision continues on Wall Street on Tuesday. After a two-day meeting of the Fed, an interest rate hike is not expected on Wednesday, but the monetary authorities are eagerly awaiting statements on inflation. Before that, investors no longer want to reposition themselves on a large scale, as only little-moving indications for the US indices show.

The Dow Jones Industrial (Dow Jones 30 Industrial) was valued by broker IG at 34,403 points one hour before the start, which is just a few points up. The technology-heavy US index NASDAQ 100, which had worked its way up to record highs the day before after a break of a few weeks, is meanwhile also seen as marginally positive with 14 131 points. While the Nasdaq index and the broad S&P 500 could continue their record rally, the Dow is still more than 700 points away from its high of 35,000 points.

The main debates are currently about the sustainability of the currently very high US inflation and the resulting increasing pressure on the central bank to tighten the reins of monetary policy. “The most exciting question will be whether the Fed is already thinking about reducing its billion-dollar asset purchases,” said one expert.

On Tuesday, economic data provided new impressions of the current economic situation in the USA. The high rise in producer prices underpinned recent inflation concerns. Meanwhile, the mood in New York’s industrial companies could not quite meet expectations and retail sales in May were a little more pronounced than expected. Data on industrial production will follow later.

On the corporate side, Boeing came into focus once more, pre-trading this was up by half a percent. The EU and the USA have reached a compromise in the dispute over mutual punitive tariffs due to subsidies for the aircraft manufacturer and its European counterpart Airbus (Airbus SE (ex EADS)), thereby defusing one of their most difficult trade conflicts. This was confirmed by the EU Commission chief Ursula von der Leyen on the sidelines of an EU-US summit, without giving any details. According to circles, the tariffs will be suspended for five years.

At the summit in Brussels on Tuesday, Joe Biden met both von der Leyen and EU Council President Charles Michel. At his summit with EU leaders, the US President underscored the United States’ ties to Europe. “Europe is our natural partner,” said Biden in the Belgian capital. It drives a slightly different course than its predecessor Donald Trumpthat the EU had verbally attacked again and again./tih/jha/

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