Shares raised in the hope that trade agreements, dollars have post-food benefits
The world’s world shares were higher on Thursday supported by the promise of US President Donald Trump on the first trade agreement in his global tariff war-which was thought to be the English-Dollar while the market was obtained when the market was encouraging the opportunity to cut short-term Fed interest rates.
Traders are also flexible for the expected quarter of the Bank of England tariff in the future. Sweden and Norwegia have left their tariffs stable, but both of them signal cutting in the future given all global uncertainty.
The European main stock market was opened higher, led by an increase of 1% from German export-exports and 0.3% increase for FTSE London, plus a similar increase in sterling to Euro, on a signal of trade agreements.
US President Donald Trump has posted on social media that he will hold an Oval office press conference later on “Main Trade Agreement with large state representatives, and highly respected,” using all the capitalized letter.
Wall Street Futures rose by almost 1% too, but economists really want to see the details of the agreement later and whether the 10% basis tariff slapped by Trump in all countries until now can be negotiated.
Investors are also anxiously waiting for the planned talks between us and Chinese officials in Switzerland on Saturday, which can mark the first step in killing the trading war that destructive between the two top economies of the world.
The market is still digesting a federal reserve decision to leave US interest rates in the range of 4.25% -4.5% for successive meetings and warnings that the risk of stagflation of higher inflation and higher unemployment has increased.
Chairman of Jerome Powell said the Fed was still in a “good place” in terms of his policy, given that it was not clear whether the US economy would continue its stable growth, or wither under increased uncertainty and the possibility of inflation.
“It’s not clear what the right response for monetary policy at this time,” Powell said, pushing the market to reduce the possibility of a June interest rate to only 20%, from 30%the day before, while the steps in July are now valued at 70%, compared to certainty almost only a week ago.
“The addition of the ‘FOMC phrase … considers that higher unemployment and higher inflation risk has increased’ saying it all,” said Head of Fitch Ratings Economist Brian Coulton. “The tariff shock will reduce the growth of real GDP and increase prices at the same time.”
Ketakpastian
In the bond market, the 10-year US Treasury rose 2 bps at 4.29%, while the 10-year German-Tolting results measured the Euro region-also rose fractional to 2.48%.
The message is waiting-and-seeing the Fed also gives the dollar index of the ride. After a short shake in Asia, he regained a traction to sit 0.5% higher in Europe just above the 100th threshold of psychological points.
The hope of the trade agreement also made the British pound up as much as 0.5%, although it subsided to $ 1,3315 a little because it was focused on switching to the expected quarter of cutting in the UK.
His governor Andrew Bailey and his colleagues have long stressed the need for a gradual and careful approach to lowering loan costs. But the analysts think it can change.
PGIM’s Guillermo Felices said his company expects three interest rates after this one because the Boe’s Setters rates began to focus more on the abundance of the global trade war.
“The front -end market is almost in line with our view,” he added, pointing to the next discount price that came in July plus two more before the end of the year.
Technology Talks
Last night in Asia, the index of MSCI shares in Asia-Pacific outside Japan had fallen 0.3% while Nikkei Japan rose 0.4% and China’s blue chip rose 0.5% because they continued to recover lost land since the “Liberation Day” tariff “Trump last month.
Wall Street has seen the final rally also after the report that Trump’s administration plans to cancel and modify the rules of the Joe Biden era that curb sophisticated-sophisticated-intelijen chip exports.
Nvidia shares (Nasdaq: NVDA) surged 3% even though the Google Alphabet (Nasdaq: Googl) parent company suffered 7.2% falling on the report that Apple (Nasdaq: AAPL) was preparing a new improved web browser.
In the commodity market, brighter trading agreements lifted oil prices after they fell more than $ 1 on Wednesday. US Roul Futures rose 0.7% to $ 58.50 per barrel while Brent was at $ 61.50 per barrel, up 0.6% on that day.
In precious metals, the price of gold rose 0.3% to $ 3,374.5 per ounce in the midst of uncertainty about the prospect of Fed’s policy, but it was still less than the highest record of $ 3,500.
Source: Reuters
