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Wall Street To Open Lower Ahead Of FOMC, CPI Announcements


The FOMC meeting announcement is scheduled this afternoon and the investors are closely monitoring inflation and interest rate changes. The Consumer Price Index and Atlanta Business Inflation reports are the other major announcement on Wednesday.

The market might react to the surging oil prices and the geopolitical situations. Chinese President Xi jinping's comments on export tariff have calmed the market tensions.

Early signs from the U.S. Futures suggest that Wall Street might be opening in the red at the opening.

As of 7.00 am ET, the Dow futures were gaining down 229.0 points, the S&P 500 futures were declining 25.75 points and the Nasdaq 100 futures were losing 67.75 points.

U.S. stocks closed higher on Tuesday. The Dow jumped 428.90 points or 1.8 percent to 24,408.00, the Nasdaq soared 143.96 points or 2.1 percent to 7,094.30 and the S&P 500 surged up 43.71 points or 1.7 percent to 2,656.87.

On the corporate sector, the FOMC Minutes will be published at 2.00 pm ET.

the Mortgage Bankers' Association's Mortgage Applications data for the week will be published at 7.00 am ET. The prior week's Composite Index was down 3.3 percent.

The Labor Department's Consumer Price Index for March will be issued at 8.30 am ET. The market analysts are looking for consensus range of -0.1 to 0.5 percent.

Atlanta Fed Business Inflation Expectations for April is expected at 10.00 am ET. The previous month's Business Inflation Expectations was up 2.1 percent.

The Energy Information Administration or EIA's Petroleum Status Report for the fourth week will be released at 10.30 am ET. The crude oil inventories in the prior week declined 4.6

10-year Treasury Note Auction will be held at 1.00 pm ET.

U.S Treasury Department's Treasury Budget for March will be released at 2.00 pm. The consensus is for a deficit of $186 billion.

In the corporate sector, French energy giant Total SA announced that it has acquired several assets located in the Gulf of Mexico as part of the Cobalt International Energy company's bankruptcy auction sale. Total submitted offers on several assets for a consideration of approximately $300 million.

Alexion Pharmaceuticals, Inc. announced that it has made a recommended public cash offer to buy Sweden-based Wilson Therapeutics AB. Alexion has offered 232 Swedish kronor in cash for each outstanding share of Wilson Therapeutics. The total equity value of the transaction amounts to 7.10 billion kronor or approximately $855 million.

Asian stocks ended mostly positive. China's Shanghai Composite index rose 17.76 points or 0.56 percent to 3,208.08. Meanwhile, China's inflation eased more-than-expected in March and factory gate inflation weakened for the fifth consecutive month.

Hong Kong's Hang Seng index finished up 168.97 percent, or 0.55 percent.

Japanese shares fell for the first time in three sessions. The Nikkei average shed 0.49 percent to end at 21,687.10, while the broader Topix index closed 0.38 percent lower at 1,725.30.

Australian shares retreated as investors sold off defensive stocks and lapped up resource stocks. The benchmark S&P/ASX 200 index dropped 28.30 points or 0.48 percent to 5,828.70 while the broader All Ordinaries index ended down 26 points or 0.44 percent at 5,925.80.

European shares are trading mostly lower. Among the major indexes in the region, the CAC 40 Index of France is losing 25.35 points or 0.48 percent, the German DAX is declining 98.33 points or 0.78 percent, the U.K. FTSE 100 Index is down 14.47 points or 0.20 percent. The Swiss Market Index is declining 46.90 points or 0.54 percent.

The Euro Stoxx 50 Index, which is a compilation of 50 blue chip stocks across the euro area, is down 0.55 percent.

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