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Wall Street set to open higher on hopes of accommodative Fed


Reuters


By Shreyashi Sanyal

June 18 (Reuters) - Wall Street's main indexes were set to open higher on Tuesday, as more dovish calls from the European Central Bank lifted expectations of a similar accommodative stance from the Federal Reserve.

The U.S. central bank is expected to leave interest rates unchanged at its two-day policy meeting starting Tuesday, but is widely seen as laying the foundation for a cut later this year.

"A rate cut this week is off the table. But all eyes and ears will be tuned into what the Fed Chairman says about the outlook and how he hints about what is next," said Steven Skancke, chief economic adviser at wealth management and investment advisory firm Keel Point in Washington.

"The big belief is for a rate cut in September but everyone is looking for a hint that it might come at the next meeting at the end of July."

Sentiment was buoyed by ECB President Mario Draghi's comments indicating a possibility of new rate cuts or asset purchases.

At 8:35 a.m. ET, Dow e-minis were up 141 points, or 0.54%. S&P 500 e-minis were up 16.75 points, or 0.58% and Nasdaq 100 e-minis were up 80.5 points, or 1.07%.

Large-cap volatile favorites such as Facebook Inc , Apple Inc , Amazon.com Inc , Microsoft Corp and Netflix Inc were on pace to extend Monday's gains.

Facebook climbed 1.9% premarket after it revealed plans to launch a cryptocurrency called Libra, the latest development in its effort to expand beyond social networking and move into e-commerce and global payments.

Boeing Co rose 1.1% after the planemaker bagged its first orders for its 787 Dreamliner passenger jets, shrugging off a slow start at the Paris Airshow.

General Electric Co inched up 0.7% as the industrial conglomerate's joint venture CFM International received an order for jet engines worth $2 billion at list prices, a day after Indian airline IndiGo placed a $20 billion order for CFM's engines.

Investors also braced for the Group of 20 summit at the end of the month, for signs of progress on resolving the prolonged trade war between the United States and China.






This article appears in: Politics , Stocks , World Markets , Economy
Referenced Symbols: AAPL ,



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