US Stocks Lower on Trade Tensions

June 12, 2019 Share Print 0

Wall Street’s main indexes dropped on Wednesday on worries of a prolonged U.S.-China trade war after Washington hardened its stance, but losses were cushioned by a muted reading on inflation that backed the case for an interest rate cut.

Data showed consumer prices edged up 0.1% in May, in line with expectations of economists polled by Reuters and pointed to moderate inflation. Excluding the volatile food and energy components, the CPI nudged up 0.1%.

“These numbers will add some fuel to the case made by the markets and many analysts that the Fed should cut rates,” said Robert Frick, corporate economist at Navy Federal Credit Union in Vienna, Virginia.

Fresh worries erupted on the trade front after President Donald Trump said he was holding up a deal with China and had no interest in moving ahead unless Beijing agrees to four or five major points.

via Reuters

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.