As Fed fallout fades, stocks left hanging near highs



* Analysts ask if Bank of England will follow Fed

* Stocks remain close to this week's record highs

* Treasury yields rise; dollar near two-month highs

* Gold gains ground after earlier plunge

By Huw Jones

LONDON, June 18 (Reuters) - Stocks were stranded just below record highs on Friday, with investors left looking for direction after digesting the U.S. Federal Reserve's more hawkish stance.

The pan-European STOXX index .STOXX of shares eased 0.19% to 458.50 points, barely below Monday's record high of 460.51.

"I would not expect too much of a change," Michael Hewson, chief market analyst at CMC Markets, said of the market.

"What has the Fed said that is particularly upsetting in terms of the outlook for interest rates and monetary policy? We are still talking 18 months' time. It suggests the economy is improving and that is a good thing," Hewson said.

The MSCI world equity index .MIWD00000PUS was off 0.13% at 713.97 points after hitting a record high of 722.32 on Tuesday, while Paris .FCHI and Frankfurt .GDAXI were little changed.

Stocks in London .FTSE fell 0.4% after data showed British retail sales fell unexpectedly last month as a lifting of lockdown restrictions encouraged spending in restaurants rather than shops, with Tesco TSCO.L down 1.8%.

Britain's biggest retailer reported a sharp slowdown in underlying UK sales growth in its first quarter, reflecting a tough comparison with the same quarter last year when consumers stocked up in the country's first COVID-19 lockdown.

The dollar =USD was heading for its best week in nearly nine months as investors priced in a sooner-than-expected ending to extraordinary U.S. monetary stimulus.

Strength in the greenback pushed oil lower for a second straight session, while spot gold remained down around 5% for the week after the Fed dented the yellow metal's safe haven appeal.

No major data is expected and corporate news was thin, leaving investors to continue pondering what the Fed's comments will mean for the assets they hold in coming months.

INFLATION GENIE

While the Fed messaging indicated no clear end to supportive policy measures such as bond buying, signals of faster-than-expected rate hikes indicated its concern about inflation as the U.S. economy recovers from the COVID-19 pandemic.

"What is pretty obvious is that the inflation genie is starting to sneak out of the bottle, and that will be a major driver of interest rates in the short to medium term," said James McGlew, executive director of corporate stockbroking at Argonaut in Perth.

In Europe, analysts were already asking if the Bank of England, whose monetary policy committee meets next week, will follow in the Fed's footsteps and adopt a more bullish tone on the economy and what that would mean for the path of UK stimulus and interest rates.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was flat after falling for four sessions.

Chinese blue-chip A shares .CSI300 were also little changed, along with Japan's Nikkei .N225 .

Gold prices, which plunged following the Fed comments, edged higher but were still set for their worst week since March 2020. Spot gold XAU= was last up 1% at $1,790 per ounce.

Hopes for a strong U.S. recovery pushed technology stocks higher on Thursday, lifting the Nasdaq Composite .IXIC up 0.87%. But worries about inflation and higher rates weighed on the broader market, with the S&P 500 .SPX edging down 0.04%. The Dow Jones Industrial Average .DJI fell 0.62%.

Higher expectations of inflation continued to lift long-dated U.S. Treasury yields. Benchmark 10-year notes US10YT=RR yielded 1.4802%, off 0.031 from a close of 1.511% on Thursday.

The dollar pulled back against the yen to 110.02 JPY= , and the euro EUR= was flat at 1.1914.

Oil prices took a hit from the strong dollar as concerns over demand and new Iranian supply also weighed.

Global benchmark Brent crude LCOc1 was down 0.68% at $72.63 a barrel after settling at its highest price since April 2019 on Wednesday. U.S. West Texas Intermediate crude CLc1 , which touched its highest level since October 2018 on Wednesday, shed 0.42% to $70.74.



Global assets Link
Global currencies vs. dollar Link
Emerging markets Link
MSCI All Country World Index Market Cap Link
Fed catches out dollar shorts Link



Additional reporting by Andrew Galbraith and Tom Westbrook:
Editing by Christopher Cushing, Edwina Gibbs and Alexander
Smith


Mga Kaugnay na Asset


Pinakabagong Balita

Morning News Call - India, August 2


Asian shares try to stabilise, China growth a worry

E
U
G
J
O
B
B

Vietnam dong, gold rates - Aug. 2


Asian factory activity hit by rising costs, Delta variant


Oil prices slide on worries over China economy and higher crude output

O
B
B

Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.

Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.

Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.

Gumagamit kami ng cookies para mabigyan ka ng mahusay na karanasan sa aming website. Magbasa pa o palitan ang iyong cookie settings.

Babala sa Risk: Ang iyong kapital ay maaaring malugi. Ang mga produktong naka-leverage ay maaaring hindi para sa lahat. Tingnan ang aming Risk Disclosure.