Stocks, the United States gives land as a market for a large week for trade, geopolitics
By Alun John and Chibuike Oguh
New York / London (Reuters) – Global stock markets have lost ground on a jerky session on Monday, while yields of US treasury bills for a long time, while investors have evaluated the developments on trade and geopolitics in addition to key American economic data.
US President Donald Trump has signed an executive decree extending a pricing truce with China of an additional 90 days, a few hours before the American prices on Chinese products returned to three -digit rates. Trump and Russian President Vladimir Putin is expected to meet in Alaska on Friday to discuss the end of the Russian war against Ukraine.
In Wall Street, the three main indices finished below. Energy, real estate and technology actions were the largest losers while consumption staples, consumption discretion and health care actions have won.
The industrial average of Dow Jones dropped by 0.45%, the S&P 500 slipped by 0.25%and the NASDAQ composite granted 0.30%.
In Europe, the Stoxx 600 index decreased 0.06%. The MSCI actions gauge around the world dropped by 0.25% to 938.16, trading near its record reached in July.
“At the surface level, the market is flat and calm, and it seems that we are in the way to see the economic data we are going to get tomorrow,” said Wasif Latif, director of investments at Sarmaya Partners in New Jersey.
“When you look under the covers and when you break the market, you get a little more sale.”
This week’s main economic press release will be the American consumer prices on Tuesday, analysts expecting the impact of prices to help push the core 0.3%at an annual rate of 3%, far from the lens of the federal reserve of 2%.
An upward surprise would defy bets on the market for a drop in September rate, although analysts assume that this should be a high number given a downward turn in the wage bill now dominates the prospects.
The markets involve approximately a probability of 90% of a relaxation of September, and at least one more reduction by the end of the year.
The yield on reference tickets to 10 years has decreased by 0.2 base points to 4.281%, while the yield in 30 -year obligation dropped from 0.5 base points to 4.8494%.
Trump has repeatedly criticized the Fed for not having reduced rates during the recent meetings, and the markets are considering who will succeed the current president Jerome Powell, whose term ends in May.
This means that the IPC data reaction will not be simple, said Paul Mackel, a global FX research manager in HSBC.
If the figure indicated pricing price pressures in the highest United States, “it could support the stagflation story, and to the detriment of the dollar,” he said, adding that this would also go against the sight of certain decision-makers that prices did not increase the prices.
