|Day's Range||12,200.94 - 12,213.54|
|52 Week Range||10,279.20 - 12,886.83|
The European Central Bank President, Mario Draghi, announced that a new stimulus package could be on the way. Yahoo Finance's Alexis Christoforous, Brian Sozzi, and Tom Belger break down the details.
The global equity markets were mostly lower ahead of the opening bell as investors digested tensions between Iran and the US. There are two Fed member speeches today that stand to move the markets, depending on the message conveyed.
A lack of stats from the Eurozone will leave geopolitics front and center. Consumer confidence numbers and FED Chatter will also need to be monitored.
Global equity markets traded mostly flat on Monday as investors awaited U.S.-China trade talks the end of this week at the G20 summit, and the dollar fell to three-month lows on bets the Federal Reserve may cut interest rates more than once this year. European stocks stumbled on fears of an escalation in Iran tensions, which also kept gold prices near a six-year high. U.S. President Donald Trump targeted Iranian Supreme Leader Ayatollah Ali Khamenei and other Iranian senior officials with new sanctions on Monday.
European stocks stumbled and the dollar hit three-month lows on Monday as hopes waned for progress in Sino-U.S. trade talks at this week's G20 meeting and fears of an escalation in Iran tensions flared up. Investors are waiting to see if Presidents Donald Trump and Xi Jinping can de-escalate a trade war that is damaging the global economy and souring business confidence.
U.S. stocks look to extend gains this week, and possibly re-test all-time highs, as investors bet on both central bank support and a breakthrough in trade talks between Washington and Beijing. Global gains were tempered, however, by rising military tensions between the U.S. and Iran, as well as the threat of "significant" sanctions on Tehran following last week's downing of an unmanned U.S. military drone. Global oil prices edge higher as Secretary of State Mike Pompeo heads to the Gulf for talks with U.S. allies and prepares to announces Tehran sanctions.
The futures are pointing to a mixed start to the day. Rising tensions in the Middle East will likely test appetite for riskier assets on the day.
A G20 summit, talks of military strikes in the Middles East and economic data will keep the markets on their toes in the week ahead.
Global markets pause as geopolitical tensions flare, the S&P; 500 is sitting at a new all-time high but may not move much higher.
The new worry is a potential escalation of the tensions between the United States and Iran. This could limit gains today by encouraging investors to lighten up their long positions.
Can the CAC40 make it 5 out of 5? Monetary policy easing and hopes of an end to the U.S – China trade war have certainly played their part.
The global markets surge after the FOMC hints at rate cuts, is this the start of the next rally or the beginning of the end for 2019’s market recovery.
Global stocks rally as both the Fed and the Bank of Japan cite slowing growth and downside risks in signalling near-term rate cuts. Fed Chairman Powell defies Trump by holding rates steady, but primes market for multiple rate cuts between now and the end of the year. Global oil prices surge on reports of a U.S. military drone shot down by an Iranian missile near the Strait of Hormuz.
European stocks surged to six-week highs on Thursday, as dovish signals from the Bank of England and Federal Reserve, allied to optimism around the resumption U.S.-China trade talks, saw investors piling into riskier assets. The pan-European STOXX 600 index finished 0.4% higher, with most country indices in the black as investors globally priced in the prospect of an easing of U.S. interest rates next month and more to follow.
A dovish FED should provide support in the early part of the day. Geopolitical risk and economic data will have an influence, however.
Markets pause in wait as the FOMC meeting progresses. The statement is due out today at 2 PM and could alter the course of U.S. monetary policy.
(Bloomberg) -- Terms of Trade is a coming daily newsletter that untangles a world embroiled in trade wars. Sign up here. President Donald Trump has already given the global economy trade wars. Now there are signs he may be gearing up for a currency war, too.With a series of tweets on Tuesday aimed at the European Central Bank and an announcement by Mario Draghi, its president, that he was prepared to cut interest rates further below zero in response to Europe’s slowing growth, Trump made a rare American presidential intervention into another economy’s monetary policy.“Mario Draghi just announced more stimulus could come, which immediately dropped the Euro against the Dollar, making it unfairly easier for them to compete against the USA. They have been getting away with this for years, along with China and others,’’ he tweeted. Later, he added: “German DAX way up due to stimulus remarks from Mario Draghi. Very unfair to the United States!’’It was not the first time Trump has blamed currency manipulation overseas for a strong dollar that raises the cost of U.S. exports. He has already become unique among recent American presidents in a shift away from the “strong dollar’’ policy of his predecessors.By targeting Draghi directly and responding in real time to an overseas central bankers’ policy pronouncement, Trump was dialing up the heat -- just as his own Federal Reserve was gathering in Washington to decide on rates in a decision expected Wednesday. Coming just days ahead of a summit with other Group of 20 leaders in Japan, the salvo served to highlight his administration’s increasingly aggressive currency policies and the place he sees for them in his trade arsenal.“They are preparing the ground, they are laying out the potential tools they may have at their disposal,’’ said Cesar Rojas, global economist at Citigroup Global Markets Inc., though he added “we’re not at a currency war just yet.’’Finance ministers and central bankers this month agreed that a currency war -- a tit-for-tat push at times of slow economic growth to actively weaken foreign-exchange rates in order to boost exports -- is in no one’s interest. They reaffirmed commitments made in March 2018 to refrain from competitive devaluations.Last month, the U.S. Treasury increased the number of economies it scrutinizes to 21 from 12 and expanded its watch list from four to nine, adding countries such as Ireland, Italy and Singapore under new tougher criteria. It again refrained from labeling China a manipulator.The Commerce Department on May 23 proposed allowing U.S. companies to seek trade sanctions against goods from countries with “undervalued’’ currencies, though it said it did not intend to target independent central banks or their monetary policy decisions. The administration has also been pushing to include currency provisions carrying the threat of sanctions in new U.S. trade agreements.There are plenty of economists who argue the U.S. should take a more forceful approach to addressing currency manipulation by trading partners. Some have even called for a 21st century Plaza Accord, the 1980s agreement that saw countries including Japan agree to engineer a devaluation of the dollar under pressure from the Reagan administration.Top PriorityIn a paper released this week, Brad Setser, a former U.S. Treasury official now at the Council on Foreign Relations, argued that “countering currency intervention by foreign governments should be a top priority of U.S. international economic policy.’’ If nothing else, other countries’ manipulation hurts the U.S.’s ability to use exports to recover following economic downturns, he wrote.In an interview on Tuesday, however, Setser said that Trump’s ECB intervention was misplaced, largely because Draghi’s comments were aimed at domestic conditions.“Most of the world recognizes that the ECB has failed to meet its inflation target and that with a slowing European economy there is pressure on the ECB to ease policy,’’ he said. Worse, Trump’s intervention could be seen as its own form of market manipulation, Setser said, and “feeds into a building narrative in Europe that the U.S. is a rogue actor under a rogue president.’’Trump has defied convention in a number of other ways, including his repeated criticisms of Federal Reserve Chairman Jerome Powell for raising interest rates. He asked White House lawyers earlier this year to explore his options for removing Powell as chairman.Joseph Gagnon, a senior fellow at the Peterson Institute for International Economics and another advocate of stronger U.S. currency policy, said the world was in an “uneasy peace’’ over currencies with China and other G-20 countries having in recent years accepted a U.S. push to refrain from competitive devaluations. In a June 6 note, Gagnon and a co-author said interventions by countries to weaken their currencies to affect their trade balance fell in 2018 to the lowest level since 2001.But the G-20 commitments are weak and “if there’s a global downturn, a global recession, countries would be very tempted to violate these terms and try to claim special circumstances,’’ he said. “There’s really no regime in place to sanction them or hit them, except the U.S. might do something.’’Trump may have some legitimate reasons to grumble. The “Big Mac” approach to gauging currency valuations shows the euro is about 15% too cheap. Since Trump launched his trade wars, China’s yuan has also fallen against the dollar, prompting the president to complain that it was undermining the impact of his tariffs and his efforts to raise pressure on Beijing.Those currency moves are widely seen as related to the weakening of the European and Chinese economies and a global economy that is looking increasingly fragile thanks in part to Trump’s trade wars. The fear, however, is that Trump’s anger over the currency shifts could also help fuel further trade actions, including tariffs he has threatened to impose on imported cars and parts from the EU but put on hold for 180 days.A drop below 1.10 for the euro-dollar rate could inflame Trump’s temper and make him more likely to impose those auto tariffs, according to Jens Nordvig, the founder of Exante Data LLC. The rate fell as low as 1.1181 on Tuesday after Draghi said additional stimulus may be needed and Trump levied his latest Twitter missive.To contact the reporters on this story: Shawn Donnan in Washington at firstname.lastname@example.org;Rich Miller in Washington at email@example.com;Katherine Greifeld in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Kennedy at email@example.com, Malcolm Scott, Brendan MurrayFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
President Donald Trump on Tuesday said he’d hold “extended” talks with Chinese President Xi Jinping at next week’s G-20 summit, as he rebuked European Central Bank President Mario Draghi over a possible move to provide further monetary stimulus.
President Trump tweeted Tuesday that the European Central Bank is "unfairly" devaluing its currency by hinting at lower rates, indirectly challenging the Federal Reserve to do the same.
Global equities move higher as the FOMC meeting gets underway, the committee is expected to alter the statement but traders are cautioned not to expect too much.
The euro was lower against the U.S. dollar on Tuesday, as U.S. President Donald Trump continued to put pressure on the Federal Reserve to ease rates by criticizing the European Central Bank. Trump slammed ECB President Mario Draghi, who earlier in the day hinted at more stimulus money and rate cuts in the if the eurozone economy does not improve. The president has been urging the Fed to cut rates, which have risen from 0% to 2.5% in the last three years.
The futures market is pointing to a mixed start to the day. Negative sentiment towards the ongoing trade war continues to limit the upside for the majors.