- Summary:
- Jerome Powell, didn’t offer any signal in his opening remarks and he didn’t mention anything about the negative interest rates. Nasdaq 100
The futures in Wall Street trading higher in premarket, ahead of Fed’s Chairman Jerome Powell as the speculation on negative interest rates rises. Three Fed members said earlier this week said that there is no need to adopt negative interest rates.
The recent optimism about the reopening of the economies boosted stocks, but the recent spike in new cases in South Korea, Germany and China raise concerns that a premature reopening might further damage the global economy.
Jerome Powell Comments
Chairman of the Federal Reserve System, Jerome Powell, didn’t offer any signal in his opening remarks and he didn’t mention anything about the negative interest rates. He said that the coronavirus crisis raises long term concerns, and the outlook is highly uncertain while there are significant downside risks. He added that “Additional policy measures may be needed to avoid lasting damage to the economy,”
The Dow Jones futures are 0.08% higher at 23,592. The S&P 500 futures are 0.07 higher at 2,854 while the Nasdaq futures are 0.26% higher.
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European Markets Retreat
European markets are under selling pressure, after news that the eurozone industrial output in March fell 11.3% below the market’s expectations. Dax is 1.33% lower at 10,675, while the CAC40 is 1.51% lower at 4,40. The UK economy contracted by 2% in the first quarter better than the expectations of a -2.6% decline. The March GDP drop by 5.8%.