Global equities edged lower on Tuesday as investors assessed a wave of US economic data and remarks from Federal Reserve Chair Jerome Powell.
Speaking at a central banking forum in Sintra, Portugal, Powell declined to commit to a July rate cut, saying the decision would “depend on the data” and reaffirming a meeting-by-meeting approach. Market expectations for a cut in July inched up to 21.2% from 18.6% the previous day, according to CME’s FedWatch Tool.
On Wall Street, the Dow Jones Industrial Average rose 0.9%, while the S&P 500 and Nasdaq pulled back from record highs, falling 0.3% and 1% respectively. The declines were led by Tesla, which slumped over 5% after President Donald Trump threatened to end federal subsidies to Elon Musk’s companies.
The MSCI World Index slipped 0.3%, reflecting cautious sentiment across global markets. However, UK indices bucked the trend, with the FTSE 100 rising 0.3% and the FTSE 250 gaining 0.5%.
Economic data added to the mixed picture. The ISM manufacturing index showed continued contraction in June, while the JOLTS report indicated job openings climbed to 7.8 million in May. Yet a drop in hiring suggested labour market momentum may be slowing.
