|

Risk on headlines filtering through supporting global equities

  • Trump is announcing a tax cut for middle-income Americans sometime in the next year.
  • Bloomberg released “sources” story that was claiming that the US administration was considering an interim trade deal with China.

 We have had a couple of encouraging headlines for risk and US stocks that are bound to filter their way through leading up to the Federal Reserve next week, including President Trump announcing a tax cut for middle-income Americans sometime in the next year.

A Reuters poll suggests that the Federal Reserve will be cutting rates by 25bps at the September meeting and again in Q4 2019. The poll suggests that the Fed's decision-making not influenced by president Donald Trump's criticism said nearly 80% of economists while US-China trade relations will either worsen or stay about the same by end-2020, said nearly 80% of economists.

The sentiment is picking up and gaining traction with respect to risk on which is sending the Yen packing. The euro was also able to recover, despite the European Bank cutting interest rates overnight and implementing quantitative easing. US stocks continued to climb following a Bloomberg released “sources” story that was claiming that the US administration was considering an interim trade deal with China that would either freeze or even roll back US tariffs, in particular avoiding the tariffs due to hit consumer goods in December - However,  less than an hour later, a “senior administration official” told CNBC that such a deal was “absolutely not” being considered.

Market implications:

Global equities are enjoying a ride of easier money cycles form the major central banks, (Fed next?), as well as the goodwill, gestured type of trade headlines. Such a switch up should lave the Yen and CHF out to dry off and be supportive of EM-FX and commodities

Author

Ross J Burland

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

More from Ross J Burland
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD eases from around 1.1800 after US GDP figures

The US Dollar is finding some near-term demand after the release of the US Q3 GDP. According to the report, the economy expanded at an annualized rate of 4.3% in the three months to September, well above the 3.3% forecast by market analysts.

GBP/USD retreats below 1.3500 on modest USD recovery

GBP/USD retreats from session highs and trades slightly below 1.3500 in the second half of the day on Tuesday. The US Dollar stages a rebound following the better-than-expected Q3 growth data, limiting the pair's upside ahead of the Christmas break.

Gold to challenge fresh record highs

Gold prices soared to $4,497 early on Monday, as persistent US Dollar weakness and thinned holiday trading exacerbated the bullish run. The bright metal eases following the release of an upbeat US Q3 GDP reading, as USD finds near-term demand in the American session.

Crypto Today: Bitcoin, Ethereum, XRP decline as risk-off sentiment escalates

Bitcoin remains under pressure, trading above the $87,000 support at the time of writing on Tuesday. Selling pressure has continued to weigh on the broader cryptocurrency market since Monday, triggering declines across altcoins, including Ethereum and Ripple.

Ten questions that matter going into 2026

2026 may be less about a neat “base case” and more about a regime shift—the market can reprice what matters most (growth, inflation, fiscal, geopolitics, concentration). The biggest trap is false comfort: the same trades can look defensive… right up until they become crowded.

Dogecoin ticks lower as low Open Interest, funding rate weigh on buyers

Dogecoin extends its decline as risk-off sentiment dominates across the crypto market. DOGE’s derivatives market remains weak amid suppressed futures Open Interest and perpetual funding rate.