Wednesday September 27th


US futures point to a higher open after the Fed’s hawkish tone; Trump to speak on tax reforms

U.S. stock index futures pointed to a slightly higher open on Wednesday morning as investors continued to digest comments from Federal Reserve Chair Janet Yellen and looked ahead to new announcements on tax reforms. Federal Reserve Chair Janet Yellen said Tuesday it would be "imprudent" to keep monetary policy on hold waiting for inflation to reach 2 percent. The quite hawkish remarks sent the dollar and U.S. bonds higher as investors grew confident of another rate hike in December. Meanwhile, investors will be looking for details from U.S. President Donald Trump, who is due to speak on his plans for tax cuts Wednesday. The much-anticipated tax reform package is expected to be presented during a speech in Indianapolis, at 3 p.m. ET. Durable goods orders rose 1.7 percent in August. Non-defense capital goods orders excluding aircraft rose 0.9 percent, versus the 0.3 percent increase expected by economists polled by Reuters. U.S. Treasury yields rose, with the U.S. 2-year yield near 1.47 percent and the 10-year yield around 2.30 percent. The U.S. dollar index traded more than half a percent higher to 93.55, its highest in more than a month, according to Reuters. Pending home sales figures are due at 10 a.m. ET. In the corporate world, Actuant is set to release its latest earnings figures before the bell. Thor  industries will report after the bell. In Europe, markets edged higher on merger news and also on hopes of monetary policy tightening in the U.S. In oil markets, Brent crude traded at around $58.23 a barrel on Wednesday morning, down 0.36 percent, while U.S. crude was flat at $51.89 a barrel. Gold inched lower on Wednesday, weighed down by a stronger dollar amid prospects for a December interest rate hike in the United States and ahead of the unveiling of a tax plan by Donald Trump's administration. Spot gold had declined 0.1 percent to $1,291.81 per ounce by 0729 GMT. In the previous session, prices fell 1.3 percent in their biggest loss in over two weeks following comments by U.S. U.S. gold futures for December delivery fell 0.5 percent to $1,294.90.