Trade tariff news buoys stocks
|Wall Street found fresh support yesterday off the back of news that both Beijing and Washington were dialling back the latest round of tariffs on some imports, providing a degree of confidence for markets globally. This, combined with talk of the White House easing sanctions against Iran plus anticipation that the European Central Bank will launch significant stimulus measures in today’s policy statement is buoying sentiment although as Wall Street once again closes in on those record highs, the question has to be asked as to just how long the run of optimism will be.
US inflation data due before the opening bell could offer some meaningful insight, as an upbeat figure here would have the potential to reign in expectations over just how aggressively the Federal Reserve will want to cutting interest rates through the remainder of the year. With expectations being for a print of just 1.8% and with oil prices falling too, it seems unlikely that the dovish calls will be scaled back, potentially providing stocks with another shot in the arm.
Ahead of the open, the market is calling the DOW up 5 at 3006 and the S&P up 67 at 27204.
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