- Reuters/Jason Lee
Here is what you need to know.
It’s a Fed day. The market is pricing in a 94.8% chance the Fed hikes at Wednesday’s meeting, but Janet Yellen will have a harder time justifying that hike, says Pedro Da Costa.
There’s still a chance Brexit could be reversed. European leaders are giving Prime Minister Theresa May the option to cancel Brexit and politicians within her Conservative Party are urging for a “soft Brexit.”
UK wage growth slows. Wages climbed 2.1% including bonuses in May, and 1.7% excluding bonuses, data released on Wednesday by the Office for National Statistics showed. Meanwhile, average earnings adjusted for inflation slipped 0.4% including bonuses, and 0.6% excluding them.
China’s retail sales beat. Retail sales rose 10.7% year-over-year in May, according to data released on Wednesday by the National Bureau of Statistics. That was just ahead of the 10.6% that economists had anticipated.
Oil is sliding. West Texas Intermediate crude oil trades down 1.2% at $45.92 a barrel after data released on Tuesday showed OPEC production is rising. US oil inventories will be released at 10:30 a.m. ET.
Nasdaq is ferociously defending its territory. Nasdaq wants regulators to reject a proposal by Bats that would allow it to compete for orders at the market close, arguing it would cause harm to both publicly-traded companies and their shareholders, Reuters says.
Jeff Gundlach says traders and speculators should be raising cash. During his quarterly “Total Return Webcast,” Gundlach said that while traders should be raising cash, long-term investors will likely be able to withstand a stock market pullback.
A cryptocurrency for weed is sponsoring Dennis Rodman’s trip to North Korea. PotCoin, a cryptocurrency for the legal marijuana industry nearly doubled in value to more than 18 cents on Tuesday after Dennis Rodman was seen wearing a t-shirt with the company’s logo en route to North Korea.
Stock markets around the world are mixed. China’s Shanghai Composite (-0.7%) was the laggard in Asia and Germany’s DAX (+0.7%) is out front in Europe. The S&P 500 is set to open little changed near 2,440.
US economic data is flows. CPI and retail sales will cross the wires at 8:30 a.m. ET. The US 10-year yield is down 2 basis points at 2.20%.