Investing.com - Here are the top five things you need to know in financial markets on Thursday, June 15:
1. Trump reportedly under investigation for possible obstruction of justice
U.S. President Donald Trump is reportedly being investigated by special counsel Robert Mueller for possible obstruction of justice, according the Washington Post (WaPo) citing unidentified officials.
Mueller is investigating alleged Russian interference in the 2016 U.S. presidential election and possible collusion with the Trump campaign.
Former FBI Director James Comey told Congress last week he believes he was fired by Trump to undermine the agency's Russia probe and WaPo’s sources indicated that the obstruction of justice investigation began in the days following the firing.
2. Markets await slew of data as Fed details taken in
Markets could give extra weight to a slew of data out stateside on Thursday after the Federal Reserve (Fed) hiked rates and Fed chair Janet Yellen said the central bank expected the economy to expand at a moderate pace and that recent declines in inflation were transitory.
Thursday will see the release of a deluge of U.S. data at 8:30AM ET (12:30GMT) including weekly jobless claims, reads on manufacturing from both the Philadelphia and New York regions for the month of June as well as import and export prices for May.
May industrial production will also be released at 9:15AM ET (13:15GMT).
Ahead of the data and while keeping an eye on mounting political concerns surround the report of the Trump investigation, the dollar moved higher on Thursday. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, inched up just 0.04% at 97.01 by 6:04AM ET (10:04GMT), moving away from Wednesday’s seven-month lows of 96.31.
3. Gold prices slump towards 3-week lows as Fed weighs
Gold prices were under pressure on Thursday, sliding toward a three-week low after the Federal Reserve hiked rates and maintained plans to go ahead with another increase by year-end.
The Fed raised interest rates for the second time this year at the conclusion of its policy meeting on Wednesday, putting it in a range between 1.0%-1.25%.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange sank $16.00, or around 1.3%, to trade at $1,259.90 by 5:54AM ET (9:54GMT).
Gold prices touched their lowest since May 26 at $1,259.00 in the prior session.
4. BoE takes up central bank baton
Following the Fed’s decision to hike interest rates by 25 basis points in the prior session, markets’ focus shifted to the Bank of England (BoE) of Thursday.
The U.K. monetary authority will announce its rate decision at 7:00AM ET (11:00GMT) on Thursday, with analysts expecting no change in policy.
Market players expect BoE policymakers to strike a cautious tone in the wake of last week's shock parliamentary election results, which denied any party a majority and fomented a sense of political chaos just days before Brexit talks begin.
Cable was under pressure Thursday as the release of downbeat U.K. retail sales data earlier weighed on the pound and investors looked ahead to the BoE policy decision.
Amid the slew of monetary policy announcements, the Swiss National Bank said it was keeping its benchmark interest rate unchanged at -0.75%, in line with expectations, and reiterated that the Swiss franc was overvalued.
The Bank of Japan was also on deck and expected to keep policy on hold in a release expected for around 11:00PM ET (3:00GMT Friday).
5. Oil remains below $45 amid growing concern over U.S. supply glut
Oil traded lower on Thursday as data out the prior session showed U.S crude stockpiles shrank by less than anticipated, while gasoline inventories increased.
The figures underlined fears over a global supply glut sparked by worries that rising U.S. shale output is offsetting agreed production cuts by OPEC and non-OPEC members.
U.S. crude oil futures fell 0.31% to $44.59 at 5:55AM ET (9:55GMT), while Brent oil lost 0.11% to $46.95.