(As of 7:05 am PST)
US equities are lower this
morning after rallying back yesterday in what has been a back and forth week
for the stock market. Renewed fears over the timing of a Federal Reserve
interest rate hike sent stock futures lower early this morning. San Francisco
Fed President, John Williams, who is speaking at a conference in Singapore this
week commented early Thursday that he expects the Fed to raise rates later this
year. The Fed officials' remarks are a reiteration of recent views from the
central bank that rates will likely rise in 2015. Adding to the negative
sentiment today is news out of Europe that a reported deal between Greece and
its creditors hasn’t been finalized. Yesterday’s stock market rally was due in
part to comments from Greece’s Prime Minister Alexis Tsipras that suggested the
debt-laden country was nearing a deal. Late Wednesday afternoon, those comments
were downplayed by other European officials including IMF Director Christine
Lagarde who indicated that a deal had not been reached. The back on forth on
Greece has sent European stocks lower today. US economic data is largely being
overshadowed today by the interest rate and Greece stories. Jobless claims rose
more than expected last week while a report on pending home sales showed sales
jumped in April to the highest level in nine years. Oil prices are lower ahead
of a report on crude inventories while gold is also lower. Interest rates are
flat while the US dollar is up. It’s a busy morning for stocks with lots of
macro stories tugging on investor sentiment. Expect volatility to pick up as
the week wears on.
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