Investing.com - Here are the top five things you need to know in financial markets on Tuesday, August 21:
1. Dollar Drops on Trump Fed Criticism
The U.S. dollar was broadly lower against a basket of the other major currencies, after President Donald Trump reiterated his displeasure at the Federal Reserve's monetary policy.
Just before the market close on Monday, Reuters published an interview with Trump during which the president said he was “not thrilled” with Fed Chairman Jerome Powell for raising rates and added that the Fed should do more to help him to boost the economy.
“We’re negotiating very powerfully and strongly with other nations. We’re going to win. But during this period of time I should be given some help by the Fed. The other countries are accommodated,” Trump said.
This is not the first time Trump has called out the Fed for raising rates. When he did so in July, Powell stressed that the Fed operated independently of political considerations.
The president's latest criticism of the Fed comes three days before Friday's much anticipated speech by Powell at the central bank's annual Jackson Hole Symposium.
The Fed has been hiking rates and is expected to continue doing so, with another two increases expected this year.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.2% to 95.50, after touching an overnight low of 95.31, a level not seen since August 9.
The index is facing its fifth straight losing session, which would mark the first such streak since the start of the year.
In the bond market, Treasury prices slipped, pushing yields a tad higher across the curve. The benchmark 10-year yield ticked up to around 2.835% while the 2-year yield rose to 2.605%.
Elsewhere in foreign exchange markets, the euro rose 0.3% to 1.1520, after climbing as high as 1.1541 overnight.
The offshore Chinese yuan was 0.2% stronger against the greenback at 6.8420.
Trump also accused China and Europe of manipulating their respective currencies.
2. Trump Pessimistic on This Week's China Trade Talks
On the trade front, Trump told Reuters that he does not expect much progress from talks with China this week in Washington, dashing hopes it will lead to an easing of their ongoing trade conflict.
Trump said Chinese negotiators would be arriving shortly, adding he did not "anticipate much" from the mid-level discussions.
A nine-member delegation from Beijing, led by Vice Commerce Minister Wang Shouwen, will hold meetings with U.S. officials led by the Treasury undersecretary, David Malpass, in Washington on Wednesday and Thursday.
Washington and Beijing have been locked in escalating rounds of tit-for-tat tariffs since the start of the year, with $34 billion in goods targeted by each country and another $16 billion slated to go into effect this week.
Trump has threatened further tariffs on exports worth as much as $500 billion, as he tries to reduce a trade deficit and protect intellectual property rights.
3. U.S. Stock Futures Tick Higher; S&P, Nasdaq Eye Records
On Wall Street, U.S. stock futures pointed to a higher open, with the S&P and Nasdaq set to edge closer to their respective all-time highs.
The blue-chip Dow futures were up 48 points, or around 0.2%, at 5:40AM ET, the S&P 500 futures tacked on 4 points, or around 0.1%, while the tech-heavy Nasdaq 100 futures indicated a gain of 14 points, or roughly 0.2%.
At current levels, the S&P is less than 0.6% below all-time highs set in January, while the Nasdaq is 1.4% below its record, last reached in late July.
Elsewhere, in Europe, the majority of the region's major bourses were higher in mid-morning trade, with most sectors in positive territory.
Earlier, Chinese markets led gains in a mostly positive trading session across Asia, after the country's banking regulator urged institutions to boost lending in the country, the latest in Beijing's effort to boost policy stimulus.
4. Kohl's, TJX Reports Earnings
The second quarter earnings season has all but wound down, however results today are expected from a couple of retailers, including Kohl’s (NYSE:KSS) and TJ Maxx parent company TJX Companies (NYSE:TJX).
Both are due to post earnings ahead of Tuesday's opening bell.
Wall Street analysts expect same-store sales at Kohl’s rose 2.7% during the second quarter while TJX’s same-store sales are projected to rise 2.4%, according to estimates.
Shares of both companies have outperformed the S&P 500 handily over the last year, with TJX rising 41% over that period while Kohl’s stock has more than doubled.
Other companies reporting results ahead of the opening bell include Toll Brothers (NYSE:TOL), and Smuckers (NYSE:SJM).
After the close, Urban Outfitters (NASDAQ:URBN), and Red Robin (NASDAQ:RRGB) are on deck.
5. Metals Lead Commodities Higher Once Again
Commodities that are priced in dollars and so benefit from any weakness were higher across the board, with metals leading the charge once again.
Gold futures rose 0.5% to $1,200.60 an ounce, extending gains into a third session.
Copper climbed for a second day, rising around 1% to $2.695 a pound.
Among other metals, silver climbed 0.8% to $14.78 an ounce. Platinum rose 0.8% to $800.10, while palladium added 0.8% to $906.00.
Oil prices were slightly lower however, amid worries over a slowdown in global demand.
The American Petroleum Institute is due to release its weekly report for the week ended August 10 at 4:30PM ET.