Dollar Higher, Fed In Focus

 
Snapshot: 

        -U.S. stock futures higher; dollar higher; 10-year Treasury yield at 2.25%; Nymex at $46.98; gold at $1095.00
        -Watch for: U.S. July consumer confidence, flash services PMI, Richmond Fed survey; S&P/Case-Shiller home prices; FOMC meeting begins; Canada June industrial and raw materials prices; earnings from Ford, Pfizer, Merck, UPS, Dupont, Twitter, Yelp, Gilead Sciences, Husky Energy, WestJet Airlines
        News: Tsipras Races to Secure Bailout; Turkey Riles U.S. Ally in Fight Against Jihadists; UK Economy Accelerated in Second Quarter
        The dollar staged a modest comeback early in European trade Tuesday after some heavy losses on Monday. Analysts said turmoil in China and falling commodity prices have undercut expectations that a Fed rate hike is imminent, weakening the buck. But the dollar has steadied along with European equity markets as Chinese markets pick up from their lows Tuesday. At 05.50am ET, EUR/USD was at 1.1060-63. USD/JPY was at 123.68-69.
        In Europe, the euro fell 0.3% against the dollar to $1.1059 after a sharp rise on Monday.
        The yen weakened against the dollar and other major rival currencies during Asian trading hours Tuesday, with a recovery in Asian stocks prompting nervous investors to loosen their grip on the perceived safety of the Japanese currency.
        U.S. Treasurys have slipped back after Monday's rally, which came as turmoil in China's stock market pushed investors into safe assets. Yields have nudged up in European trade as Chinese shares bounced from their lows and stocks in Europe opened higher. At 02.47am ET, the 10-year Treasury yield was 0.03 percentage point higher at 2.25%.
        Wall Street was on track to break a five-session run of losses on Tuesday, shaking off China's continuing rout, as stock futures tilted higher ahead of a highly anticipated Federal Reserve meeting.
        Investors were also waiting for fresh consumer-confidence figures, home-price data and earnings from Ford and Pfizer among others.
        Futures for the Dow Jones Industrial Average rose 64 points, or 0.4%, to 17,460, while those for the S&P 500 index added 8.60 points, or 0.4%, to 2,073. Futures for the Nasdaq 100 index picked up 13.50 points, or 0.3%, to 4,536.25.
        Investors will be closely watching the two-day Federal Reserve meeting that kicks off on Tuesday. A statement is due at 2 p.m. on Wednesday and is likely to be scrutinized for clues to the timing of a rate hike.
        Chairwoman Janet Yellen has previously indicated that a rate increase is on the cards before the end of the year, possibly as early as September.
        However, expectations for a September move have faded recently, partly because of the market turmoil in China and a slide in oil prices.
        "The Fed will surely bring the Chinese selloff and commodity rout under their consideration and will tailor their response accordingly. We do not think that Yellen will fan the fire any further by bringing the exact timeline for a rate hike. In fact, there is a strong possibility that she may water down those expectations and use a very dovish approach," said Naeem Aslam at AvaTrade.
        Global stock markets steadied after heavy declines, as Chinese shares bounced back from their lows in another roller coaster session.
        Oil prices fell touching a four-month low as a rout in Chinese stock markets added to the already bearish investor sentiment.
        "Supply excess and disappointing Chinese demand are the common denominators that have pulled the price rug from underneath oil prices," said David Hufton of PVM brokerage.
        Brent crude, the global oil benchmark, fell 1.4% to $52.73 a barrel in midmorning trading on London's ICE Futures exchange, having touched $52.28 a barrel earlier in the session, its lowest level since mid-March.
        On the New York Mercantile Exchange, West Texas Intermediate futures were trading down 0.9% at $46.98 a barrel.
        Gold fell 0.1% to $1,095.00 a troy ounce.
        Turkey Riles U.S. Ally in Fight Against Jihadists
        Kurdish fighters who are allied with Washington accused Turkey of shelling their positions in Syria, a sign of the difficulties Ankara and the U.S. face as they boost cooperation to fight Islamic State militants.
        Tsipras Races to Secure Bailout
        Talks on a new bailout program between Greece and its creditors will start on Tuesday, almost a week later than planned.
        UK Economy Accelerated in Second Quarter
        The British economy stepped up a gear in the second quarter, lifting growth prospects during the rest of the year but raising questions about how much longer the Bank of England can keep interest rates pegged at record lows.
        SEC Poised to Complete CEO-Pay Ratio Rule
        Securities regulators are poised to complete rules requiring companies to disclose the pay gap between chief executives and employees, putting in place a measure without broad exclusions sought by firms.
        Federal Lawmakers Propose Credit Reporting Changes
        A group of Democratic lawmakers is proposing a bill that would make it easier for people who got rid of credit-card debt using bankruptcy to fix inaccurate credit reports.
        Auto Regulators Vow to Continue Crackdown
        Regulators who hit Fiat Chrysler with a $105 million settlement vowed to continue a crackdown on car makers over safety lapses.
        Write to Sarka Halas at sarka.halas@wsj.com
        (END) Dow Jones Newswires

        July 28, 2015 06:13 ET (10:13 GMT)

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