Wall Street rises, ASX set to edge up
During the week, the main focus of President Donald Trump’s commercial war and the potential impact on the US economy and the Federal Reserve’s interest rate policy. On Thursday, Trump began to implement higher import tax on dozens of countries.
Nevertheless, the market has greatly shook the latest tariff rise.
Morgan Stanley’s Asset Management Market Research and Strategy Team President Daniel Skelly said, “S&P 500 can emphasize the extent to which the market is in conflict with the tariff headings this week,” he said.
In the midst of an unpredictable tariff policy, the unknown way of the economy was the main reason for the FED to keep the comparison interest rate constant.
FED President Jerome Powell was under pressure to reduce interest rates from Trump. Policy decisions are not only taken by the FED President. All 12 members of the Federal Open Market Committee vote for interest rate changes.
Trump has the opportunity to make more control on the FED after the Fed nominated Miran for a void in the Board of Directors. Miran is Trump’s high -level economic advisor and is a definite vote to support lower interest rates.
The decision to keep the Fed’s interest rates fixed contained two votes to reduce interest rates. His next meeting is in September, and the Wall Street is an overwhelming majority that the Central Bank will reduce interest rates four percent points.
Treasury yields rose higher. The return in the 10 -year Treasury rose from 4.25 percent to 4.28 percent late on Thursday. Following the expectations for the FED actions more closely, the two -year treasury yield rose from 3.73 percent to 3.76 percent late on Thursday.
The expectation of interest rate cut is followed by a series of signals that the economy could weaken last week. This included reports showing that inflation was higher in June and that the US employers hit the brakes for recruitment in July.
Both are key concerns for the FED that tries to cool inflation to a target ratio of 2 percent and also try to fulfill the “full employment” mission.
Low interest rates may increase the economy and investment prices, but the disadvantage is that they can increase inflation further. Concerns about inflation re -heating can be overshadowed by concerns about a weak employment market.
Loading
Wall Street and FED will receive more information about the temperature and economy of inflation next week. With a report on retail sales, the government will publish inflation updates at both consumer and wholesale levels.
Ubs Global Wealth Management Ulrik Hoffman-Burchardi, the Chief Investment Officer of America in America, said, uz We believe that stocks will be supported among the solid foundations, but the new headings will be supported next week, the investment manager of the United States and the Global Stock President Ulrik Hoffman-Burchardi, tariff and geopolytic risks, emotions against the economic and geopolytic risks It can challenge.
They all raised the 49.45 points of the S&P 500 to 6,389.45. Dow 206.97 points rose to 44.175.61 and Nasdaq ends at 207.32 points at 21.450.02.
Asian markets, Japan’s main trade ambassador said the US agreed to correct a problem on tariffs that will be valid for export to the United States.
European markets were mixed.
AP
Market Summary Bulletin is a winding of the trade of the day. Take each onetoKday afternoon.
