- US stock markets are reacting positively to news of trade talks resuming
- Asian stocks are trading higher today
- USD/EUR reaches two-week high, GBP/USD approaching two-year low after Boris Johnson’s victory
Stock markets in the United States traded higher on Tuesday after news emerged that in-person trade discussions between the US and China are set to resume next week. Investors were also encouraged by a large number of mostly positive earnings reports.
The Dow Jones strengthened by 177.29 points, or 0.65 per cent, while the S&P 500 traded 20.44 points, or 0.68 per cent, higher.
Most Asian stocks followed their American counterparts’ example this morning, trading higher on the news of the trade talks resuming next week. The USD reached its highest level in two weeks against the Euro two days before this week’s ECB meeting.
Meanwhile, the Australian dollar weakened after a well-known economist predicted that the country’s central bank would reduce interest rates earlier than expected.
In Sydney, Tokyo, Hong Kong and Shanghai, equity benchmarks all gained ground, but there was a contraction in Seoul. Futures on the S&P 500 remained fairly stable after that benchmark strengthened to above 3,000 yesterday. Crude oil prices increased for the fourth consecutive day.
In the UK, the GBP dropped to within a cent of its lowest level against the USD in well over two years after it was confirmed that Boris Johnson is set to become Theresa May’s successor as British Prime Minister.
Important upcoming events
The earnings season in the US is still in full swing, and companies set to release earnings reports this week include Alphabet, Amazon.com, Caterpillar, Unilever, Boeing and McDonald’s. On the other side of the pond, tomorrow will bring the ECB policy decision. Economists and analysts generally expect officials to signal their readiness for an interest rate cut and possibly wider stimulus measures.