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US stocks are set for a muted start on Wednesday as investors take a breather following yesterday’s rally that helped the Dow Jones Industrial Average snap a eight-day losing streak.With less than 90 minutes to go before the markets open, futures are pointing to little to no changes for the three major indices.
Traders are keeping an eye out for speeches from Federal Reserve officials, with Chicago Fed president Charles Evans and his Boston and San Francisco counterparts, Eric Rosengren and John Williams all due to speak at separate events today.
Comments on Tuesday from Federal Reserve vice chair Stanley Fischer that he sees the central bank raising rates two more times this year took some of the steam out of the recent rally in Treasuries and lifted the dollar. The market will be on the lookout for any further comments on the Fed’s interest rate outlook.
Across the pond, investors are also tracking developments in the UK, which formally initiated the process to exit from the European Union earlier this morning.
The pound is trading 0.1 per cent lower against the dollar at 1.2440. The DXY index – which tracks the greenback against a basket of major currencies – is 0.4 per cent higher, notching its second day of gains after dropping to a four month low on Monday amid jitters over Trump’s administration’s ability to push through his pro-business reforms.
Concerns over these so-called “Trump trades” continue to drive demand for haven assets. Yield on the 10-year Treasury was 1.8 basis points lower at 2.4 per cent while gold was 0.1 per cent higher at $1,252.75 per troy ounce.