Trade war truce lifts markets advance

  • IFC Markets
    2019/07/15
  • IFC Markets
    2019/07/08
  • IFC Markets
    2019/07/01
  • IFC Markets
    2019/06/24
  • IFC Markets
    2019/06/17
  • IFC Markets
    2019/06/10
  • IFC Markets
    2019/06/03
  • IFC Markets
    2019/05/27
FOREX_ONE_VIDEO_Y

The agreement by President Donald Trump and Chinese President Xi Jinping to resume trade talks as they hold off on imposing additional tariffs buoyed global markets last week. The S&P 500 rebounded 1.7% and the ICE US dollar index advanced 1.1%.

The main US stock indexes rebounded last week as major developed market indexes advanced. Nasdaq recorded the biggest gain: it rallied 2.3%. Only the Swiss franc out of six major currencies reversed previous week’s dynamics, while the range of major currency pairs’ weekly fluctuations widened as it shifted lower. The Swiss franc was also the leader in terms of percentage change: it fell 1.6% against the US dollar.

Traders’ attention will be focused on Federal Reserve Chairman Jerome Powell’s testimony before Congress on monetary policy on Wednesday and Thursday this week. The majority view currently is the central bank will lower the expected pace of interest rate cuts: fed funds futures data showed the 50-basis points rate cut probability traders priced in before the jobs report fell from 25% to 5.9% following the June nonfarm payrolls report.

LINKS_UL