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US Dollar stocks fall after Fed keeps rates unchanged
The dollar fell on Wednesday, U.S. stock prices extended their losses, and interest-rate-sensitive two-year Treasury yields declined after the Federal Reserve kept interest rates unchanged. Meanwhile, oil?prices soared in response to renewed attacks across Middle East. The ?Fed's decision was largely expected, but three of the 12 members ?of ?the policy-setting Federal Open Market Committee dissented from the move that left the benchmark interest rate in the 3.50%-3.75% range in favor of a quarter-percentage-point hike. After major airstrikes resumed, oil prices rose by about 8%. This raises the possibility of further disruptions in already strained global energy supplies. This rally was boosted by data from the industry showing a decline in U.S. oil inventories. Bill Merz is the head of capital market research and portfolio development at U.S. Bank Wealth Management, Minneapolis. Oil prices rose, and expectations were raised that the U.S. The central bank may raise rates this week despite the fact that inflation in June was lower than expected. JP Powers said that this was expected after the June inflation print showed progress. "But with each meeting, we are creating more uncertainty than ever before." Fed funds futures traders now price in 60% odds that a rate increase will occur in September. The bigger question is how much pressure they will have to exert in order to raise rates in September. The market is expecting the next rate hike in September, as the inflation rate is high and crude oil prices are surging. The Dow Jones Industrial Average dropped 2.2% to 51,594.86, while the S&P 500 fell 1.5% to 7,316.39, and the Nasdaq Composite declined 1.7% to 24,442.94. The MSCI All Country World Price Index dropped by 1.1%, to its lowest level in June 2011. The yield on the benchmark U.S. 10 year notes increased 7.53 basis to 4.679%. This is due to concerns over future inflation. The dollar index (which measures the greenback versus a basket including the yen, the euro and others) fell by 0.45%, while the euro rose by 0.54% to $1.1447. Worries about tech giants The global markets have been volatile in the past month, as investors questioned the sustainability of AI spending. This is due to signs that U.S. major companies continue to invest billions of dollars into AI at the expense free cash flow. Meta missed earnings on Wednesday and lowered its annual capital budget forecast range as the social media giant focuses on building data centers to increase its AI computing power. The focus is now on returns, not spending plans. Investors are looking for evidence that AI capex generates revenues right now and also strengthens the future growth prospects," said Gina Martin Adams. Gina Martin Adams is chief market strategist at HB Wealth. As China's competition intensifies in both the race to develop advanced chip technology and its cheaper AI models, investors are becoming more scrutinizing. Amazon.com and Apple are expected to release earnings this week. Even though SK Hynix reported a six-fold increase in its quarterly profit, it fell short of expectations. Its shares dropped 9.6%. South Korea's KOSPI fell 6% in a single day after falling more than 10% and reaching a new three-month low. South Korea will impose additional restrictions on leveraged single-stock exchange-traded fund (ETFs) in response. This includes a cap on an individual's investments of up to 20%. The pan-European STOXX 600 fell by 0.3% while the FTSEurofirst 300 index in Europe fell by 0.4%.
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US stocks continue to fall after Fed maintains rates
?U.S. Stocks remained lower for the day. Interest-rate sensitive yields on 2-year Treasury notes reversed an earlier rise and the dollar fell?on Wednesday, after the Federal Reserve kept interest rates steady. This was a move which economists had expected. The ?decision to leave the benchmark interest rate in the 3.50%-3.75% range drew dissents from three of the 12 members of the policy-setting Federal Open Market Committee that "preferred" a quarter-percentage-point hike at this meeting. The recent rise in oil prices, due to the return of the war against Iran, had some expecting that the U.S. Central Bank would raise rates this week. The U.S. central bank is still raising rates despite the fact that June's inflation data was lower than expected. JP Powers is chief investment officer of TWA Wealth Partners. He said that this was expected after the June inflation print revealed some progress. "But with each meeting, we are now creating more uncertainty than ever before." The Dow Jones Industrial Average fell 1.55% to 51,928.87. The S&P 500 dropped 0.50% to 7391.31 while the Nasdaq Composite declined 0.37% to 24784.10. The yield on the interest rate-sensitive 2-year Treasury note was unchanged at 4.277%. The yield on the benchmark U.S. 10 year notes increased 3.67 basis points, to 4.641%. The dollar index (which measures the greenback in relation to a basket including the yen, the euro and other currencies) fell by?0.25%, falling from 101.17. The oil prices rose by around 7% as major airstrikes resumed across the Middle East. This quelled hopes of an imminent end to the?Iran war. The rally was exacerbated by data from the 'industry showing a decline in U.S. oil inventories. Bill Merz is the head of capital market research and portfolio development at U.S. Bank Wealth Management, Minneapolis. EARNINGS TO SET TONE Investors will also be waiting for a wave key earnings. Microsoft and Meta are due to report their results after the close of markets, followed by Amazon.com, and Apple later in this week. The global markets have been volatile this month, as investors question whether the AI spending boom will last. This is despite signs that U.S. major companies are continuing to invest billions in the technology and continue to drain cash from their free flow. "The focus is shifting away from budgets to return on investment." Investors are looking for evidence that AI capex generates revenues right now and also strengthens 'the future growth prospects,' said Gina Martin Adams, chief strategist at HB Wealth. As China's competition intensifies in both the race to develop advanced chip technology and its cheaper AI models, investors are paying more attention. The expectations have become so inflated that SK Hynix shares fell 9.61% despite a six-fold increase in its quarterly profit. South Korea's KOSPI - which has become emblematic for the wild swings of AI sentiment - fell almost 6% in a single day, after falling more than 10% and reaching a three month low. South Korea's finance ministry announced on Wednesday that it would introduce new restrictions on leveraged exchange-traded products, such as ETFs with single stocks. These will include a cap on individual investors who invest in these products. The pan-European STOXX 600 fell by 0.29% while Europe's FTSEurofirst 300 fell by 0.36%. The MSCI All Country World Price Index was down 0.45% in the last few days and had earlier dropped to its lowest level since 11 June.
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Official Israeli source: Trump and Netanyahu discussed all options, including an attack on Iran.
?U.S. In their meeting on Wednesday, President Donald Trump and Israeli Premier Benjamin Netanyahu discussed all possible ways to stop Iran's nuclear program, including diplomacy, pressure from the economy and force. The official told reporters in a press conference after the two men had met at the White House, on Tuesday that Netanyahu did not inform Trump of Israel's preference for an attack against Iran. The official stated that Trump's decision was final. The official stated that Trump had 'three options, all of which were discussed in detail: a deal, continuing the blockade, economic pressures and a massive strikes. Officials said there was evidence that?Iran’s clerical leaders have been rattled? by rising inflation, but that the impact on the global economy and the oil markets were also taken into consideration. The oil prices soared on Wednesday, one of the biggest spikes since the beginning of the war on February 28. This was due to a joint Israeli and U.S. aerial campaign against Iran. Tehran responded by launching strikes on Israel and Gulf States. Israel did not take part in the two-week U.S. airstrikes this month, which prompted Tehran to respond by firing on U.S. military bases. However, it has warned Tehran that it will strike back if attacked. The United States and Saudi Arabia attacked Iran-backed paramilitary groups on Wednesday. Trump promised to "beat the fucking sh*t" out of Iran after it fired at U.S. soldiers days after he stopped?air strikes. Iran has confirmed that it fired at U.S. bases in Jordan, as well as ships in the Strait of Hormuz. It also rejected an Omani proposal for a joint management of the Strait.
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SAIL and Krakatau Steel to invest $350 Million in a stainless steel plant
Two Indian sources said that India's state run Steel Authority of India and Indonesia's Krakatau Steel are planning to invest up to $350 million in a stainless-steel slab plant in Indonesia. Sources said that the?plant?will have a?capacity of?500,000 metric tonnes and will be operational in the next three to five years. SAIL and Krakatau Steel have signed a preliminary joint venture agreement in Indonesia to produce stainless steel plates. This was done during the visit of Indian Prime Minister Narendra Modi to Indonesia earlier this month. Sources said that SAIL will send a "technical" team to Indonesia in the next month to produce a feasibility study. After this, both companies will finalise details such as the equity structure, timeline for government approvals, and other details. Sources declined to be identified because the discussions aren't public. SAIL didn't respond to an email sent Monday seeking comment. Krakatau Steel?did not respond to an email request for comments made on Tuesday. Sources?said that the proposed plant's capability could be?expanded once it becomes operational. One source said that partnering with Krakatau Steel could help SAIL obtain nickel at a lower price, which is a crucial raw material for stainless steel production. Indonesia produces more than half of the world's nickel. The second source said that SAIL would consume all the output from the planned Indonesian facility, and then bring the stainless steel plates to its Salem plant to be rolled and finished. Salem is located in Tamil Nadu, a southern Indian state. Sources said that the state-run steelmaker would primarily sell the finished product to Indian clients, with a small portion?possibly being exported to Europe and the Middle East. According to commodities consultancy BigMint, SAIL was India’s third largest?steel manufacturer in the fiscal year ending March 2025. It held a 10.1% market share. India, which is the second largest producer of crude steel in the world after China, has identified Indonesia as well as more than a dozen?countries to cooperate with the steel industry. This will boost exports and ensure key raw materials. BigMint data shows that India's finished steel consumption has increased by 55% in the last five years. This is more than double the increase in production of 42%. Indian steelmakers are "pivoting" to the domestic market in order to offset weaker imports from Europe and Britain, but Chinese steel is sabotaging that strategy. (Reporting from New Delhi by Neha Arora; Additional reporting in Jakarta by Fransiska Nanangoy; Editing by Mayank Bhadwaj, Christian Schmollinger).
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Stocks fall as Mideast conflict reignites and Fed decision looms
U.S. stock prices fell, while oil and Treasury yields rose, as the fighting in the Iran war resumed just hours before the highly anticipated 'Federal Reserve interest rate decision due later on Wednesday. Although the Fed is expected to keep rates unchanged, traders have priced in roughly 34% of a rate hike. This is because rising oil prices are reigniting concerns over inflation which remains above the U.S. Central Bank's annual target of 2%. The markets have fully priced in a Fed rate hike for the September meeting. Chris Low, FHN Financial's chief economist, said that if oil prices continue to rise in September, then the Fed will determine that the shock has lasted for long enough to warrant a rate increase, or increases. The market also believes that some participants will make the case for rate hikes today...and there's a good chance they can convince a majority to support them. After major airstrikes resumed, oil prices rose more than 6%. This quelled hopes of an imminent end to Iran's war. This rally was exacerbated by data from the industry showing a decline in U.S. crude inventories. The Fed chairman Kevin Warsh prefers to give less "forward guidance" on the Fed's probable monetary path. The yield on the benchmark U.S. 10 year notes increased 2.45 basis points from late Tuesday to 4.629%. The Dow Jones Industrial Average dropped 1.37% to 52 024.98, the S&P 500 declined 0.62% at 7,382.73 while the Nasdaq Composite was down 0.83% at 24,670.23. EARNINGS TO SET TONE Investors will also be waiting for a wave key earnings. Microsoft and Meta are due to report their results after the close of markets, followed by Amazon.com, and Apple later in this week. Investors have questioned the sustainability of AI spending boom amid signs that U.S. major companies are continuing to invest billions in the technology and continue to drain free cash flow. The focus is now on returns from investment, not spending plans. Investors are looking for evidence that AI capex generates revenues right now and also strengthens future growth prospects, said Gina Martin 'Adams, Chief Market Strategist at HB Wealth. As China's competition intensifies in both the race to develop advanced chip models and Chinese firms rolling out cheaper AI models, there is a growing concern. Even a six-fold increase in SK Hynix’s quarterly profit failed to meet expectations, sending the shares tumbling by 9.61%. South Korea's KOSPI fell almost 6% in a single day, after falling more than 10% and reaching a three-month high. South Korea is responding by introducing additional 'curbs' on leveraged single-stock exchange-traded fund, or ETFs. This includes a cap that would limit an individual investor's investment to 20% of total assets. The pan-European STOXX 600 fell by 0.21% while Europe's FTSEurofirst 300 fell by 0.28%. The MSCI All Country World Price Index dropped by 0.57%, to its lowest level since June 26.
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Hungary's Paks Nuclear Plant will shut down one reactor due to a drop in the Danube water levels
Operator MVM announced that the Paks nuclear plant in Hungary will shut down one of the 'four reactors' at a time of?1300 GMT on Wednesday due to record low water levels along the Danube River, which provides cooling water for the facility. On Monday, the plant had already cut output by 254 Megawatts at another unit. The plant operates four Russian-built nuclear reactors with a combined 2 gigawatts of capacity. It produces almost?half of Hungary’s electricity. The shutdown on Wednesday will reduce production to?about 60 percent of its capacity. It follows?contingency steps taken in June, during a heatwave record. Authorities exempted this plant from temperature limits for discharged cooling waters. The water levels along the Danube are now at new record lows. This has disrupted cargo and river cruises on one of Europe's most busy?waterways. The Environment Minister Laszlo Gajdos stated earlier on Wednesday that the Hungarian water management authorities are ready to assist in ensuring cooling water supplies for the plant. He said that the authorities had placed four pumping pontoons, and two floating cranes near Paks in preparation for a possible deployment as water levels are expected to continue to drop over the next few days. Reporting by Gergely szakacs and Anita Komuves. Mark Potter edited the article.
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NextEra and Brookfield plan a $100 billion Kentucky datacenter campus
NextEra Energy and Brookfield are building a $100 billion campus of data centers at an 'ex-uranium enrichment site' in Paducah, Kentucky. The soaring demand for electricity in the United States is driving companies to invest heavily into artificial intelligence data centres and other technologies that strain an aging U.S. electric grid. NextEra is the largest U.S. power company and will provide 2.6 GW in battery storage and 2 gigawatts (GW) of natural gas to support the datacenter. Brookfield, on the other hand, will own and operate the 1.8 GW campus. One gigawatt can power approximately 750,000 homes. The campus will be built on the Department of Energy’s Paducah Site. This site was originally constructed in 1952 for the production of enriched uranium, but it was closed down later. NextEra said the project complies with the Trump Administration's "Ratepayer Protection Pledge" which seeks?to ensure that companies building and using data centres?pay over?and above normal rates to avoid costs being passed on to average households. Brookfield CEO Bruce Flatt said in a statement that "the Department of Energy Paducah Site will be the seed of a plan to invest 100 billion dollars?in AI Infrastructure". The project should be completed in 2032. Reporting by Vallari Shrivastava, Bengaluru. Editing by Tasim Zaid
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Allied Gold's $4 Billion sale to China's Zijin falls through, lands a $295 M investment
Zijin Gold & Allied 'Gold has scrapped its planned C$5.5 Billion ($3.90 Billion) buyout. Instead, the?Chinese?company took a 9.2% share for around $295 M. In premarket trading, shares of Allied Gold listed in the U.S. fell by nearly 15%. The companies announced on Wednesday that they had mutually agreed to allow the deadline of July 29 to expire as "there was no reasonable likelihood" that the remaining conditions would be met in a reasonable time frame. Allied also cited broader external factors affecting trans-border transactions at this scale but did not provide any further?details. Zijin Gold operates mining operations in Asia, Africa and South America, while the Canadian firm has gold mines,?development and development projects on the Ivory Coast, Mali, and Ethiopia. In January, Zijin announced its agreement to purchase Allied for C$44 a share. ZIJIN?REMAINS INVESTOR Zijin has agreed to purchase approximately 12.8 million newly-issued Allied shares for?C$32.55 each in a private placing for the '9.2% stake. The transaction is expected to close around August 10. Allied stated that it 'expects' to use the proceeds - including the completion and ramping up of the Kurmuk Mine in Ethiopia and the expansion of the Sadiola Mine?in Mali - to advance growth initiatives. It also said they expect the proceeds -including increasing production – at their Ivory Coast operations, and funding exploration across the business. ($1 = 1.4098 Canadian dollars) (Reporting by Arunima Kumar in Bengaluru; Editing by Vijay Kishore)
Analysts' reactions to the US-China Trade Agreement
U.S. officials and Chinese officials announced that they had reached an agreement on a framework for re-establishing their trade truce and removing China's restrictions on exports of rare earths. However, there was little indication that the long-standing trade disputes would be resolved.
Li Chenggang, Vice Minister of Commerce in China, said that the two teams agreed to implement their Geneva consensus. They would then take the framework agreed upon back to their respective leaders.
An official at the White House said that the agreement allows the U.S. a tariff of 55% on imported Chinese products. The tariff includes a baseline "reciprocal tariff" of 10%, a fentanyl-trafficking tariff of 20% and a 25 percent tariff that reflects existing tariffs. China would impose a tariff of 10% on U.S. imported goods.
MARKET REACTION:
S&P 500 was up 0.1% as investors waited for more details and to see if the decision would be implemented.
QUOTES:
GENE GOLDMAN IS THE CHIEF INVESTMENT OFFICER FOR CETERA INVESTMENT MANAGEMENT IN EL SEGUNDO CA.
The equity markets breathed out a sigh after hearing about a possible US-China deal. This news should be taken with caution. While President Trump announced that the imports of Chinese goods would increase from 30% to 50% and Chinese rare-earths exports could resume, little is known about what China will get in return. "I doubt that this is a one way deal, and therefore the market caution observed overnight."
SAM STOVALL IS THE CHIEF INVESTMENT STRATEGIST AT CFRA RESEARCH IN ALLENTOWN PENNSYLVANIA.
"We have seen a relatively tepid reaction to news of the 'deal' made with China. To me, that indicates indifference. The market is saying, ok, you've agreed to keep talking and have set up a structure for future discussions, but there hasn't been anything really significant resolved. Tell me something I should know. We all know it won't be good if there isn't a comprehensive solution. We would have to buy our dolls elsewhere, and that will cost more.
The market has struggled to hold on to its gains despite better than expected inflation figures today. I can only assume that the people wanted to hear more about the China negotiations. Investors may have sold because they thought we were overbought.
OLIVER PURSCHE SENIOR VICE-PRESIDENT, ADVISOR WEALTHSPIRE ADVISE, WESTPORT CONNECTICUT
The market hasn't reacted to the deal yet because we haven’t seen details. The devil lies in the details, as with most things. Another big news item is that the U.S. has a framework in place for future discussions with China, which contradicts a previous statement that it was a done deal.
The report on inflation this morning, although softer than expected was due to lower energy prices, and also an indication of further slowdowns in the U.S. economy.
ADAM BUTTON, CHIROP CURRENCY ANATOMIST, FOREXLIVE TORONTO
Trump certainly has tried to spin the news positively. "Obviously, this is good news. China and the U.S. reached an agreement. It's unclear what the U.S. is doing and what China wants to achieve. Trump made a hint at this when he said he wanted to expand China's trade. The U.S.-China negotiations have in some ways raised more questions than they have answered. Will this tariff rate stick? What are the U.S. & China working on?
The ultimate conclusion about China is that it's not getting worse. So, that's good. "We probably built in some expectation of maybe material progress."
JOHN PRAVEEN MANAGING DIRECTOR PALEO LEON PRINCETON NJ
"The worst case scenario is likely behind us. Both sides are trying to save face. The U.S. thought the issue of rare earths was important. They reached an agreement. It is a question of whether or not it will be implemented. "The fact that they have an agreement at all is likely to be a relief for market.
Both sides got something. It's important that the situation is de-escalating. It's likely a relief to the markets."
We'll need to wait to see if the tariffs are further reduced. After the dust settles, it'll probably be a bit lower because this tariff level will likely cause inflationary pain to the consumer."
When Trump and Xi get together, they will probably reduce it further. "You need to keep something aside for the meeting."
PETER CARDILLO, CHIEF MARKET ECONOMIST, SPARTAN CAPITAL SECURITIES, NEW YORK:
"That is good news, of course. It's still a while away, and both Trump and Xi have to ratify it, but it's a given that this will happen. This is good news, and it eases concerns... But the real deal is that there's an agreement which would allow China to resume exports of rare-earth products, something I believe was crucial to this."
ROBERT PAVLIK SENIOR PORTFOLIO MANAGEMENT, DAKOTAWEALTH, FAIRFIELD CONNECTICUT
It's a positive headline at least. It's positive that both countries are working together to exchange technology for rare-earth materials. We'll wait to see if Xi approves it, and what Trump says."
WASIF LATIF, PRESIDENT, AND CHIEF INVESTOR, SARMAYA PARTNERS PRINCETON NEW JERSEY
"It is becoming clearer that the initial high tariffs and large scales of tariffs were a negotiation tactic. When you saw the cards that each side brought to the table, China with rare earths and the US with other trade-related chips including the impact on students here at universities, you could see how they both wanted to reach an agreement. This is good news for investors.
"However the market already anticipated this because the rally we saw at the low tariffs was already baking in a better result than what was initially being put out. The futures started to fall when the agreement was announced in the early hours of this morning. It felt more like a situation of selling the news than a market impact, because many of the expected benefits were already backed in.
The CPI is currently the news that moves markets. It will be interesting to observe the long-term trade impact of tariffs. Tariffs have been a hot topic for many years. Some people say they are inflationary, while others claim it is deflationary. "But I think that the truth is somewhere between.
CHRIS WESTON HEAD OF RESEARCH PEPPERSTONE MELBOURNE
The devil is in the detail, but the lack reaction indicates that this outcome was fully expected.
The Geneva agreement is a good thing, but the fact that there was no reaction on S&P500 Futures and only small movements in CNH and AUD suggests the outcome was expected. Details matter, particularly the amount of rare earths going to the US and the freedom of US chips to go East. But for now, as long as headlines about the talks between both parties are positive, risk assets will be supported.
LIN GENGWEI is the co-founder and CEO of RAIN TREE PARTNERS in Singapore.
Both sides are willing and under pressure to reach an accord. The Sino-U.S. Rivalry will continue to persist despite the temporary success of these talks.
The U.S. may ease restrictions on chip exports from China in response to both pressures from Beijing and the domestic semiconductor industry.
MARK DONG, CO-FOUNDER OF MINORITY ASSET MANAGEMENT, HONG KONG:
This is good news for the market. There's now a bottom-line that neither side will cross.
Both sides will work to reduce the trade deficit.
ZENG WENKAI, CHIEF INVESTMENT OFFICER, SHENGQI ASSET MANAGEMENT, HONG KONG:
The market probably anticipated this -- Trump always chickens out (TACO).
"Look at the way countries negotiate with the U.S. today; it is no longer how Vietnam did things in the early days. Japan and South Korea have taken a more aggressive stance. "Kneeling is not the answer. It only leads to more bullying."
CHARU CHANANA CHIEF INVESTMENT STRATEGIST SAXO SINGAPORE
The markets will welcome the change in tone, from confrontation to cooperation. We're still not out of danger, even though there are no more meetings planned. Next, Trump and Xi must endorse and enforce the framework.
It's important to not confuse this tactical deescalation with a complete reversal in strategic decoupling. The competition in technology, supply chain, and national security is still very strong. There will always be new issues, and it is the implementation of this "old deal" that will determine how far we go.
TAN XIAOYUN IS THE FOUNDING PARTNER FOR ZONSO, GUANGDONG.
"Talks will proceed under the framework agreed upon, and I think the U.S. is more willing to compromise than China in order to reach an agreement."
"Under current circumstances, U.S. faces more pressing issues, while the Chinese have more breathing room. China used to be defensive but now is offensive by leveraging rare earths and market access. This marks a shift in power and strength."
MICHAEL McCARTHY, CHIEF OFFICER MOOMOO AUSTRALIA SYDNEY
"I will be watching how bonds trade on this day in light of it." Currency markets seem to be taking this in stride and equity markets have returned to their all-time highs.
Since weeks, the market has been anticipating this deal. It will be positive for the market, as the dollar will weaken and equities will rise, but this is not a major change.
CAROL KONG CURRENCY STRATEGIST, COMMONWEALTH BBANK OF AUSTRALIAN, SYDNEY
"I believe in this environment...any hints of progress on a possible trade agreement will be beneficial for markets.
"It's going to be hard for both sides and take a very long time before they can reach a comprehensive agreement." This type of comprehensive agreement usually takes years to reach, so I am skeptical that the framework agreed upon at the London meeting will be comprehensive. "Tensions may have de-escalated temporarily, but will escalate in the coming months."
RAY ATTRILL HEAD OF FOREX STRATEGY, NATIONAL AUSTRALIA BANK SYDNEY
It's too early to declare that a new US-China trading agreement is imminent. We've heard a lot of positive things about agreements, but we've not seen any real progress.
"Our view remains that, whatever is agreed upon in the next few weeks and months - the baseline view - is that the global tariff situation will be far worse than it was before Trump became president. We'll still have a tariff climate we believe is detrimental to global growth."
TONY SYCAMORE MARKET ANALYST IG SYDNEY
If we maintain the terms of the Geneva Agreement we will see US tariffs for Chinese goods remaining at 30% for some time, and Chinese tariffs for US goods remaining at 10%. This is a reduction from 145% and 125%, respectively. This would be amazing.
"I think that was the consensus of the market... now people are trying to decide whether they want to buy or sell the US Dollar and I believe that reflects a little bit of this indecision.
The U.S. equity market is holding up at the moment because of this. I still think they are overcooked and need to pullback. "It's been an incredible run, and we're pushing up against the records from February. For me, it makes sense that they take a break."
DAVID CHAO, GLOBAL MARKET STRATEGIST, ASIA PACIFIC, INVESCO, HONG KONG:
"Recent headlines have shown that both the US and China are ready to reach a deal. This is good news for both markets and policymakers. We believe that cooler heads will prevail and the path has been set for a closer dialogue between top leaders in both countries.
The news that the US and China may have reached a deal over rare earths, semiconductors, or jet engine parts is a good indicator that we are past peak tariff uncertainty. (Compiled by Global Finance & Markets Breaking News)
(source: Reuters)