United States stocks extend rally after more dovish Fed tilt

Powell Poloz

Shares also were boosted by the Australian central bank's decision on Tuesday to trim its benchmark interest rate by a quarter of a percentage point in the first such cut in almost three years. Global stock markets shed over $2 trillion in value in May. The U.S. -China trade war has a cast a dark cloud over global GDP.

On the flip side, the 1.1210-1.1200 region (50-day SMA) now becomes immediate support to defend, which if broken might turn the pair vulnerable to slide back towards testing the 1.1135-30 intermediate support before eventually falling to challenge the 1.1100 round figure mark. "So obviously a rate cut would provide liquidity into the economy and the marketplace, and that's what investors are looking at right now".

"Given the extent of the dovish re-pricing of the Fed outlook and the collapse in US treasury yields in recent weeks, the dollar losses appear fairly muted in this context", said Chris Turner, head of FX strategy at ING in London.

Additionally, some districts said the trade uncertainty had already taken a toll on local investment and employment. The possibility that the USA and Mexico may begin a series of tit-for-tat tariffs only adds to economic woes.

Investors added to bets that the Fed would have to lower borrowing costs multiple times by year-end on Wednesday after a report by a payrolls processor showed private employers added 27,000 jobs in May, well below economists' expectations and the smallest monthly gain in more than nine years.

Manufacturing shrinks as Brexit stockpiling halts
Expectations are for the measure to inch up to 50.6 from 50.4 in April and above the three-year low of 48.9 registered in March. There were however widespread reports that Brexit uncertainty had held back client demand and remained a headwind to growth.

The Fed has held its benchmark rate in the range between 2.25% and 2.5% this year, with Trump advocating for lower rates as he continues to chase tariffs.

But the biggest lift for regional markets came from Fed Chairman Jerome Powell's comment that the central bank was "closely monitoring" trade developments and would "act as appropriate" to sustain the US economic expansion.

Global trade growth is projected to be the weakest in 2019 since the financial crisis a decade ago. Morgan Stanley said that a recession would likely start within nine months if the Trump administration moves forward on raising tariffs on the remaining $300 billion of Chinese imports.

"Weak sentiment around the breakdown in U.S". "The U.S. economy, generally, is in the midst of a very lengthy expansion, the U.S. consumer remains confident, but trade policy is definitely a downside risk". The Canadian trade deficit is expected to narrow modestly due to higher oil prices in April.However, the result should not have any impact on the Canadian dollar. For now, the bears are winning out. US private employers hired at the slowest pace in more than nine years in May, weakness that analysts blamed on the heightening global trade tensions. Crude inventories jumped by a surprise 6.8 million barrels in the last week of May, while gasoline inventories also rose by 3.2 million barrels.

The precious metal is on pace for a sixth consecutive gain, which would be the longest win streak since an 11-day rally ended January 5, 2018.

Related News:



Most liked

Liverpool have enquired over in-demand Premier League star, £60m valuation
Additionally, reports alleging that Maddison is a childhood Manchester United fan , made the Red Devils forerunners in his pursuit.

Thiem ‘forgets’ Serena incident, hits ‘tweener’ past beaten Monfils
Thiem is into the last eight at the year's second Grand Slam for the fourth time in just his sixth appearance. If she'd seen me, it would have been nicer for her to wait.

Kylie Jenner Is Adding An SPF Product To The Kylie Skin Range
And as we follow Kylie through her meetings of the day we get a few sneak peeks into what the Kylie empire has in store for us. The 21-year-old beauty mogul shared a vlog on YouTube on Monday that showed what a "typical day" is like for her .

Woman who accuses Neymar of rape gives details
In the clip, Neymar revealed series of WhatsApp messages with the woman, including naked photographs of her in bed. According to Brazilian journalist Raphael Zarko, Neymar left the stadium just minutes after he was carried off.

New date, new identity for Canadian Open — MCCARTHY
Here's the critical decisions you'll face as you fill out your lineup for the RBC Canadian Open (values courtesy of DraftKings ). Both players had some extra prep time for Hamilton GCC after missing the cut at the Memorial . "I mean, I'll be fine".

Woman, 74, spins wildly in basket under Arizona rescue helicopter
Geisel said he got some forward flight to reduce the spin, which allowed rescuers to pull the injured woman up to the aircraft. The woman was taken to a nearby hospital for evaluation.

Amid trade war, China’s Xi talks up economy
They will also visit Moscow's main zoo, where two pandas gifted earlier this year by China are expected to be unveiled. The pandas, who could be seen chomping bamboo as Xi and Putin arrived, will living in a specially built enclosure.

#KuToo: why women in Japan are campaigning against high heels
However, the government refused to change the law, claiming scope for redress already existed under the Equality Act 2010. She added: "I would like social perceptions to change so that women wearing formal flat shoes becomes standard".

President Donald Trump attempts to explain his Meghan Markle 'nasty' comments
Trump added: "You know what?" When asked what he thinks about Markle, he said: "I think she's very nice. Trump replied: "We didn't talk about it.I was going to because it was so falsely put out there".

Cristiano Ronaldo's hat-trick sends Portugal into UEFA Nations League final
Portugal will be seeking their second worldwide title after winning the 2016 European Championship with a team led by Ronaldo. The technology was in place at the 2018 World Cup in Russian Federation and this season's Champions League knockout stages.

Nation celebrates Eid-ul-Fitr with traditional fervour
And one of the most important part of the festival is to buy gifts for your friends and family, especially children. Congregational prayers were held across the country to mark the end of the holy month of Ramazan.

At least four dead as man goes on the rampage in Australia
Witnesses described the shooter using a pump action shotgun to fire multiple blasts at the Palms Hotel and Buffalo Club. Duty Superintendent Lee Morgan told CNN that a man had been taken into custody at approximately 7:45 p.m. (4:15 a.m.

US Navy Plane Intercepted by Russian Fighter Jets Over Mediterranean Sea
Russian intercepts of American military reconnaissance are fairly common in global airspace over the Baltic Sea and the Black Sea. Just last month, American stealth jets intercepted four Russian bombers and two fighter jets off the coast of Alaska.

Juventus director Paratici: Pogba? Let's wait for the new coach
Solskjaer is keen to keep Pogba, who scored 16 goals in 47 games last season, and build a new-look team around the World Cup victor .

NCAA is moving men's 3-point line to global distance
The rule will move the line back from 20 feet, 9 inches to 22-1¾, the same measurement used in worldwide play. Assisting in offensive spacing by requiring the defense to cover more of the court .