Opening Bell: Stocks Waver On Heightened Trade Uncertainty Ahead Of Fed

 | Dec 11, 2019 07:36AM ET

  • U.S. futures remain in holding pattern as heightened trade uncertainty prevails over interest rates decisions
  • Hang Seng outperforms despite new setback for Carrie Lam government
  • British pound slips as PM Johnson loses half of his poll lead
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Futures on the S&P 500, Dow and NASDAQ 100 and European shares ranged around neutral levels this morning, ahead of the Fed’s final monetary policy decision of the year and with a key trade tariff deadline only four days away.

With a Fed's stay on rates all but certain, it is most likely something else—trade uncertainty—that is keeping investors in a holding pattern. The same can be said for the ECB’s policy decision, coming up on Thursday, and for the U.K. general election—also on Thursday— which hasn’t seemed to be much of interest to stock traders either.

Amid endless back-and-fourths and conflicting reports on the state of U.S.-China negotiations, the next batch of U.S. tariffs—hitting consumers items, whose price variations would be felt immediately by citizens—hold the potential to drastically escalate the trade spat. In the background, U.S. President Donald Trump's reelection bid amid growing impeachment calls and a slowing economy for China are raising the stakes of a trade deal for both sides.