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Stocks have changed shortly after the US summit. US-North Korea



  • Reservations delete North Korea's summit
  • U.S. inflation shows signs of reaffirmation
  • The meeting of the Fed will begin

EE. UU Shares mixed on Tuesday, as investors focused on upcoming central bank announcements this week after the president

Donald Trump

historic summit with North Korean leader Kim Jong Un.

The Dow Jones industrial average fell 21 points, or less than 0.1%, to 25299 shortly after the opening bell, while the S & P 500 added less than 0.1%. The Nasdaq compound gained 0.2%.

The market seemed to have little reaction to the day of talks between Messrs. Trump and Kim in Singapore, which ended with a vague commitment to denuclearize the Korean Peninsula. Market participants said to a large extent that the outcome of the talks remained unclear and that North Korean risks in general were difficult to assess.

"It may be an interesting historical moment, but it is only a modest step to eliminate that risk of tail: the markets taking it with some skepticism and I want to see a much more concrete follow-up", said

Larry Hatheway,

chief economist and head of investment solutions at GAM Holding.

Instead, investors are more focused on the upcoming central bank policy decisions on interest rate hikes and new economic data for clues to the pace of inflation, as well as on signs as if trade tensions will escalate between I know. UU and key allies such as Canada, Mexico and the European Union.

Fund managers surveyed by Bank of America Merrill Lynch in June perceived a trade war as the biggest tail risk for the markets, followed by a hard-line policy error by the Federal Reserve or the European Central Bank. Less than 5% sees North Korea as the biggest risk.

The Fed begins its two-day policy meeting in Washington on Tuesday, where investors are largely expecting officials to raise their short-term benchmark interest rate by another quarter of a percentage point. conclusion.

The new price data on Tuesday morning further supported the fact that inflation is steadily increasing, which would further encourage the Fed to continue its gradual pace of rising interest rates. The consumer price index, which measures what Americans pay for products such as lettuce, toys and services such as haircuts, rose by 2.8% in May from the previous year, a peak since February 2012. [19659008] While investors currently hold 74% the Fed raised rates twice more in September, opinions are much more mixed at the December meeting, based on the federal funds futures tracked by CME Group.

Then, on Thursday, the ECB will announce its own political decision. Last week, ECB chief economist Peter Praet said the bank could decide as soon as this week's meeting ends its bond purchase program. These asset purchases have been credited with supporting a strong recovery in the euro zone, although the economy has shown some signs of slowing down.

On the other hand, the Stoxx Europe 600 rose less than 0.1% after cutting previous gains. Markets in Asia closed almost a little higher.

Shares in South Korea, which generate roughly half of its revenues abroad, fell 0.1% on Tuesday, while the South Korean won declined 0.2% against the dollar. Japan's Nikkei rose 0.3% and Hong Kong's Hang Seng gained 0.1%, supported by gains in health stocks.

Gold fell less than 0.2% to $ 1,301.30 an ounce and the dollar rose 0.1% against the yen, suggesting little impact on haven assets.

Yields on 10-year Treasury bonds changed little by 2,969% on Tuesday, while the WSJ Dollar Index, which tracks the dollar against 16, rose 0.1%.

Michael C. Bender

and Michael Wursthorn contributed to this article.

Write to Riva Gold at riva.gold@wsj.com

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