Reuters, New York :
Wall Street’s main indexes were set to open slightly lower on Tuesday, as investors worried about the fallout of new sanctions on Iran and signs that talks with China may generate little progress on trade.
After three weeks of steady gains on the prospect of more monetary stimulus for the economy and markets, all eyes will be on speeches by Federal Reserve policymakers that are widely expected to point to a cut in interest rates next month.
A senior U.S. official said President Donald Trump is “comfortable with any outcome” from the talks with his Chinese counterpart, dampening any hopes that the United States and China would be able to strike a trade deal at the G20 summit later this week.
“It is unlikely that any resolution of the trade situation will take place until after the next Fed meeting late next month,” said Robert Johnson, chief executive officer at Economic Index Associates in New York.
A trade resolution will allow the Fed to forestall any interest rate cut, Johnson said. “I believe what Trump wants is both a Fed rate cut and to declare victory in the trade dispute with China.”
Wall Street’s main indexes were set to open slightly lower on Tuesday, as investors worried about the fallout of new sanctions on Iran and signs that talks with China may generate little progress on trade.
After three weeks of steady gains on the prospect of more monetary stimulus for the economy and markets, all eyes will be on speeches by Federal Reserve policymakers that are widely expected to point to a cut in interest rates next month.
A senior U.S. official said President Donald Trump is “comfortable with any outcome” from the talks with his Chinese counterpart, dampening any hopes that the United States and China would be able to strike a trade deal at the G20 summit later this week.
“It is unlikely that any resolution of the trade situation will take place until after the next Fed meeting late next month,” said Robert Johnson, chief executive officer at Economic Index Associates in New York.
A trade resolution will allow the Fed to forestall any interest rate cut, Johnson said. “I believe what Trump wants is both a Fed rate cut and to declare victory in the trade dispute with China.”
