The US and China are ramping up trade wars, overshadowing a speech by Jerome Powell.
It was all going swimmingly, until Trump decided to respond with a series of dramatic tweets regarding China. The tweets, ‘ordering’ US firms to seek alternatives to China, prompted a swift reversal in equities, which had been moving higher after a Powell speech that made all the right noises. Trade wars are certainly back, and this will no doubt push the Fed towards more accommodative policy. Both the Fed and China are in the president’s sights, which means that markets face a volatile few weeks, if not longer. Even a rate cut in September will likely be insufficient to appease the White House, meaning that investors should expect a volatile autumn.
A fresh record high has been seen in US utilities today, as the SPDR Utilities ETF climbs ever higher, continuing one of the most consistent rallies of the past decade. And with US bond yields going lower, along with global manufacturing PMIs, there seems to be more upside here. Perhaps there will eventually be talk of a bubble in utility stocks, an intriguing counterpart to the tech bubble of 20 years earlier.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Recommended Content
Editors’ Picks
AUD/USD favours extra retracements in the short term
AUD/USD kept the negative stance well in place and briefly broke below the key 0.6400 support to clinch a new low for the year on the back of the strong dollar and mixed results from the Chinese docket.
EUR/USD now shifts its attention to 1.0500
The ongoing upward momentum of the Greenback prompted EUR/USD to lose more ground, hitting new lows for 2024 around 1.0600, driven by the significant divergence in monetary policy between the Fed and the ECB.
Gold aiming to re-conquer the $2,400 level
Gold stages a correction on Tuesday and fluctuates in negative territory near $2,370 following Monday's upsurge. The benchmark 10-year US Treasury bond yield continues to push higher above 4.6% and makes it difficult for XAU/USD to gain traction.
Bitcoin price defends $60K as whales hold onto their BTC despite market dip
Bitcoin (BTC) price still has traders and investors at the edge of their seats as it slides further away from its all-time high (ATH) of $73,777. Some call it a shakeout meant to dispel the weak hands, while others see it as a buying opportunity.
Friday's Silver selloff may have actually been great news for silver bulls!
Silver endured a significant selloff last Friday. Was this another step forward in the bull market? This may seem counterintuitive, but GoldMoney founder James Turk thinks it was a positive sign for silver bulls.