Investing.com – Here are the top five issues facing Wednesday, July 31 in the financial markets.
1. Waiting for the Fed tax cut
All indications are that the Federal Reserve will cut interest rates for the first time in more than a decade when it announces its 20:00 hours (CET). Although one is already given a concept, there is some hope that he will unveil a dissenting vote that focuses more on Fed President Jerome Powell's indications of the future direction of the monetary policy he will propose following the announcement Markets will seek guidance on the future trajectory of interest rates. Federal funding futures estimate there is less than a 70% chance of another 25 basis point cut in September and a little over 50% chance of a third in December.
2. Apple and AMD offer mixed messages in their outcome reports
Apple shares (NASDAQ 🙂 increased more than 4% after quarterly expectations surpassed even if iPhone sales fell to less than half of their revenue for the first time in seven years. Revenue from services, iPads and Macs rose, and executive director Tim Cook's sales forecast for its fourth fiscal quarter exceeded expectations. In contrast, Advanced Micro Devices (NASDAQ 🙂 shares fell more than 5% after the microprocessor manufacturer provided less than expected revenue forecasts for the third quarter.
3. Trade talks between the United States and China will end without clear progress
The high-level negotiations in Shanghai ended earlier than planned without clear progress. No official explanation was given about the sudden resignation of the trade representative, Robert Lighthizer and the Treasury Secretary Steven Mnuchin. The news comes after US President Donald Trump released a series of scuffles on the Chinese side in China on Tuesday, which is why he called for a lack of willingness to buy US agricultural products and reiterated allegations of unfair trade practices.
4. The US futures are increasing after the results of the companies until the Fed's decision
Apple's positive results and forecasts (NASDAQ 🙂 seemed enough to disrupt a two-day bullish run on Wall Street, while traders await the Fed's announcement. Although US and China trade negotiations have ended with few signs of progress, tensions have not increased. They rise 0.2% or 6 points at 11:42 hours (CET), while advanced 0.3% or 72 points and those of technology gain 0.4% or 31 points.
5. Eurozone grows half in 2Q
The euro area showed another sign of global slowdown as economic growth slowed in the second quarter, falling to just 0.4% in the previous three months. Residents in the region have also cooled off, paving the way for the European Central Bank to continue its expected decline in monetary policy in September.
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