The US open helped keep spirits high this Tuesday, though the dollar couldn’t get the same rub from Xi’s speech that the Dow Jones did.
Besting the rise suggested by the futures, the Dow Jones rocketed 380 points higher after the bell, lifting above 24350 and just about out of its recent trading bracket. So far Trump hasn’t said anything to sap the energy the markets found following Xi’s relatively conciliatory comments, with the President’s focus temporarily switching to horrors in Syria. Yet the dollar still was on the back foot, dropping 0.3% against both the pound and the euro despite a better than forecast PPI reading.
With the Dow Jones embracing the post-Xi speech relief rebound, the European indices saw their own gains widen. The DAX and CAC jumped 1.2% and 0.6% respectively, while the FTSE touched 7250 after nearly doubled its initial growth to 1%.
This week has been very, very light on economic events to challenge the ongoing US-China trade war troubles. Wednesday, however, could see investors eye the US interest rate situation, with both the latest inflation reading and March’s Fed meeting minutes. Of course, all it would take is one tweet from Trump for none of that to matter and for the markets to get back into a tariff-fearing tizzy.
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