Join our Research Director Kathleen Brooks at 18:00 BST as we look at the huge market move following the US/ China trade agreement. What's moved, will it continue and whether this heralds a long term shift in market sentiment.
Join our Research Director Kathleen Brooks at 18:00 BST as we look at the huge market move following the US/ China trade agreement. What's moved, will it continue and whether this heralds a long term shift in market sentiment.
Markets are in full rally mode, shrugging off recent concerns and erasing losses since early April, driven by optimism around the new US-China trade agreement. The suspension of steep tariffs (the US has reduced tariffs on Chinese goods from 145% to 30%, and China has reduced tariffs on US goods to 10%) has triggered a surge in stocks, especially in US mid-caps and Big Tech, while safe havens are declining and bond yields are rising sharply.
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➡️The average US tariff level is still significantly higher than at the start of the year.
➡️Fed rate cut expectations have dropped from four to two this year, and borrowing costs are climbing.
➡️Walmart’s earnings later this week will be a key test for how these tariff changes are impacting the real economy.
➡️ The lack of a US-EU trade deal is weighing on the euro, now one of the weakest G10 currencies.
Meanwhile, European stocks are catching up, supported by consumer and tech sectors, though EU trade uncertainty lingers. Healthcare stocks are now a weak spot due to US political pressure on drug pricing, with pharma names underperforming.
Overall, while the rally is strongly led by Apple, Amazon, and Meta, questions remain about its longevity given unresolved trade issues and higher rates.
Join us live at 18:00 BST and find out everything there is to know.
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