Futures slip as aggressive rate cut hopes wane

Futures slip as aggressive rate cut hopes wane

But more importantly, the Central Bank of Turkey (CBT) may be preparing to lower the interest rates at an unsuitably faster speed compared to what could be absorbed by the market.

The US dollar is up after strong US jobs growth in June suggests the Federal Reserve will not aggressively cut interest rates any time soon.

The British pound GBP= edged down 0.1% to $1.2511 after hitting a six-month low against the dollar on Friday as a result of poor economic data and a rise in expectations that the Bank of England will cut interest rates.

The market will face its moment of reality this week.

"If they don't do something, it's going to be mightily disappointing", he said. Australia's ASX slipped 1.07%. Greek bonds rose amid hope a new government elected over the weekend will prove to be market-friendly.

U.K. Conservative Party members vote on Monday by post to choose Theresa May's successor. Some 160'000 Tories will receive their postal ballots this week and decide who, between Boris Johnson and Jeremy Hunt, should take the reins of the party and the country before July 21.

Markets await Powell's semi-annual testimony to the U.S. Congress on Wednesday, which could provide further clues on the near-term outlook for monetary policy.

If the Fed "knew what it was doing" it would cut rates, Trump told reporters before he boarded Air Force One in Morristown, New Jersey, to return to Washington after a weekend at his nearby golf club.

Friday's payrolls report for June shifted the debate from how much to cut interest rates this month to whether to move at all. The streak goes back 10 years and is the longest in modern USA history.

The Russell 2000 index of smaller companies declined 0.7% to 1,564.

At 11:00 a.m. ET, the Dow Jones Industrial Average was down 129.29 points, or 0.48%, at 26,792.83, and the S&P 500 was down 14.84 points, or 0.50%, at 2,975.57.

Germany's DAX Index dipped 0.2%. Helmerich & Payne gained 1.1%.

Apple Inc fell 2.2% and was the biggest drag on the S&P 500 and Nasdaq.

Japan's yen traded at 108.45 yen per dollar, up 0.1% on the day and above Friday's 3-week low of 108.64 yen. The yield on the benchmark 10-year Treasury yield remained 1-1/2 basis points lower at 2.030 percent, the super-long 30-year bond yields traded almost 2 basis points down at 2.530 percent and the yield on the short-term 2-year remained almost 1-1/2 basis points lower at 1.860 percent.

"The results for S&P 500 companies are expected to be underwhelming ... investors are likely to look beyond the uninspiring headline number", Jonathan Golub, chief USA equity strategist at Credit Suisse said.

Following the best first half of the year for the S&P 500 since 1997, analysts are also weighing whether investors are too optimistic about the effects of rate cuts.

The US dollar rallied and the 10-year yield jumped to 2.0390%, as the solid US jobs report released the dovish pressure on the Federal Reserve (Fed) on Friday.

CommoditiesGold fell 0.2% to $1,396.77 an ounce.

-With assistance from Emily Barrett.

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