Japan trade deal buoys stocks ahead of earnings
|The Japan-US trade deal has given equities the fuel for a new push higher, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Japan deal puts equities on the front foot
The news of a trade deal with Japan has given stocks the direction they needed after two days of indecision. Once more the stern rhetoric around tariffs has been shown to be just words. Instead, the president gets another chance to strut around as the world’s greatest dealmaker, even if it remains highly unlikely that Japan is about to discover a love for giant American cars. Now we just have to wait and see whether the EU and the US can strike a deal before 1 August.
Attention shifts to tech earnings
Markets are never focused on one subject for too long, and tech earnings tonight are poised to steal the limelight from the trade deal euphoria. So far the season has delivered enough good news to keep the rally going – rate cut hopes, trade deals and earnings seem to provide the recipe for a continuation of the post-April rebound.
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