Investing.com | Sep 16, 2020 12:14
By Peter Nurse
Investing.com - U.S. stocks are set to open higher Wednesday amid growing confidence about the global recovery, although gains will be tempered by caution ahead of the Federal Reserve meeting.
Recent better-than-expected economic data, primarily from China and the U.S., the two largest economies in the world, have helped investors regain confidence in equity markets after last week’s tech-led slump.
Earlier Wednesday the Organization for Economic Cooperation and Development boosted its global economic outlook, saying the world economy is now on course to contract 4.5% this year, up from the 6% contraction that it forecast in June.
However, the Paris-based organization, while also fretting about the resurgence of the coronavirus, cautioned policy makers not to tighten policy too quickly.
There seems little risk of the Federal Reserve doing that as it wraps up its latest two-day policy meeting later Wednesday, the first since it adopted a new approach to meeting its 2% inflation target.
The Fed is expected to update its projections for the economic and interest rate outlook, which will include forecasts for 2023 for the first time.
Economic data due for release Wednesday include U.S. retail sales at 8:30 AM ET (1230 GMT). These are expected to have increased in August, but only by 1%, compared with May's 18.2%, June's 7.5% and July's 1.2%. Core retail sales are expected to be up by 0.9%, compared with the previous month's 1.9%.
In corporate news, cloud software company Snowflake (NYSE:SNOW) is set to start trading after completing the largest ever software IPO, raising about $3.4 billion leading to a market value of more than $33 billion.
Oil prices rose Wednesday after the American Petroleum Institute detailed a big drop in U.S. stockpiles and with Hurricane Sally continuing to disrupt production after making landfall in Alabama.
The API recorded a 9.5 million-barrel draw for the week ending Sept. 11, against forecasts of a build of 2 million. The U.S. Energy Information Administration is due to release its own data later in the day.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.
More content, faster quotes and charts, and a smoother experience is available only on the App.