U.S. stocks traded lower Tuesday, amid declines in oil prices, as investors looked ahead to the Fed meeting and the U.K. vote on whether to leave the European Union.
The U.K. is set to vote June 23 on whether to leave the European Union. The latest Brexit poll showed a gain in the "leave" camp, according to a Reuters report of a TNS online poll published Tuesday. Late Monday, The Sun newspaper endorsed Brexit.
The Federal Open Market Committee kicked off its two-day meeting Tuesday and Fed Chair Janet Yellen is scheduled to hold a press conference at the meeting’s conclusion Wednesday afternoon. The central bank is also set to release its statement and summary of economic projections.
As for the data front, retail sales in US increased more than forecast in May showing that consumer spending may help to boost economic growth in the current quarter. A headline retail sales came out at 0,5% m/m, more than consensus indicated of 0,4% m/m. The report from Commerce Deparment was the last important piece of data ahead of tommorow’s FOMC meeting. The trend of spendings is still positive and with positive confidence from consumers, Federal Reserve might be right that slowdown from the first quarter of the year was temporary.
Early morning in London, the German 10-year bund yield fell into negative territory for the first time. The U.K. 10-year gilt yield hit a fresh record low of 1.126 percent. The Japanese 10-year yield hit a record low of negative 0.168 percent.
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