Wall Street: opens with little movement (DJ +0.2 per cent), with attention focused on progress in US-Iran talks
Trading on Wall Street opened largely unchanged (having been closed last Friday for a public holiday), following the latest developments in the negotiations between the United States and Iran, at the start of a day with no macroeconomic data releases on the agenda. Oil prices also remained largely unchanged after US Vice-President J.D. Vance said that talks between the US and Iran had made “great progress”, despite “threats” and “complaints”. Vance went on to say that Iran had agreed to the return of inspectors from the International Atomic Energy Agency (IAEA) to the country. Donald Trump’s deputy stated that coordination between Iran, the US and the IAEA regarding this visit would take place “this week, perhaps as early as today”. Iran has not yet confirmed the news.
A crucial test for the markets this week will be Thursday’s release of the May Personal Consumption Expenditure (PCE) price index, the Fed’s preferred measure of inflation. Even excluding the volatility of food and energy prices, the ‘core’ PCE is expected to rise, according to economists polled by FactSet. Following last week’s Fed meeting, expectations of an interest rate rise have been brought forward to October. Investors are now focusing on any inflation data that might signal an imminent rate rise by the US central bank. At the open, the Dow Jones is up 140.53 points (+0.27 per cent), the S&P 500 is up 4.98 points (+0.07 per cent), whilst the Nasdaq is down 42.78 points (-0.16%). WTI crude oil on the NYMEX is down 1.55% at $75.41 per barrel.
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