Written by Mike Dolan
LONDON (Reuters) – What matters in the United States and global markets today
Written by Mike Dolan, editor, man, financial industry and financial markets
In a bad week for long bonds, a tightly enlarged image around the world added another irritation. I discuss this and all the market news below.
Make sure to review my column today, as I explore the reason for reassessing the main foreign creditors of their possessions from the debts of the United States and what this might mean to finance America’s growing deficit.
Market accurate today
* The draft law on spending President Donald Trump faces a decisive test of stress on Wednesday, as Republicans are trying to overcome internal divisions on discounts in the Medicaid Health program and tax tariffs in the high -cost coastal states.
* Companies importing goods to the United States from China are accelerating to convert warehouses into exempt facilities from President Donald Trump’s tariff so that they are ready to sell goods.
* Oil prices gained more than 1 % on Wednesday, after reports on Israel have caused a strike on Iranian nuclear facilities fears that the conflict could disturb the availability of supply in the main Middle East.
* Britain has suffered a greater increase in April, including in the areas it is closely monitoring by the Bank of England, which investors now believe will have to slow down its gradual pace for cuts in interest rates already.
* Morgan Stanley promoted his position on American stocks to “overweight”, noting the slowdown in the global economy, but still expands despite the uncertainty in politics.
Data from the Ministry of Finance showed on Wednesday that Japanese exports increased by 2 % in April of the previous year, but shipments to the United States decreased by 1.8 %.
* Global electricity generation from solar farms is scheduled to exceed the production of nuclear reactors for the first time this summer, which represents an important milestone in the continuous growth of solar energy within global energy systems.
A bad week for bonds
Britain and Canada have reported the basic inflation that exceeds coordination in April over the past 24 hours-where it reduced interest rate expectations in both countries and send long-term government borrowing costs higher for both of them.
Moreover, crude oil prices jumped by more than 1 % on Wednesday and briefly recorded their highest levels in one month after CNN reported to strike Iranian nuclear facilities.
The dark global inflation image comes as US Federal Reserve officials are still cautious about the high tariff prices in America.
The head of the Federal Reserve at Atlanta Rafael Bustic said that American companies may deny strategies to delay the change of prices or employment in response to high import taxes and the economy may soon face a wave of prices.
“If the pre -conflict strategies have managed their course, we are about to see some changes in prices, then we will learn how consumers will respond to that,” Postek said.
The interest rates of the Federal Reserve are not now priced in the future contracts markets until October.
This last match of inflation comes in a nervous moment in the bond markets, where the long government government bonds in Japan, which leaks sharply this week after a weak debt auction there.
The US Treasury is now scheduled to sell about $ 16 billion of 20 -year bonds later on Wednesday following MOODY decision last Friday to remove the last American AAA credit rating. Each of the cabinet revenues of 20 and 30 years has returned to the top of 5 % and chased its highest levels since 2023.
With long -term bond markets on the edge of the abyss, President Donald Trump’s financial plan does not help.
Trump’s tax reduction and spending law faces a decisive test on Wednesday, as Republicans in the House of Representatives are trying to overcome internal divisions on discounts in the Medicaid Health Program and tax exemptions in high -cost coastal states. The House Gate-Gateing House has set an extraordinary hearing overnight, which is expected to work well in daylight hours.
The draft law will expand the tax cuts for the year 2017, which were Trump’s legislative achievements in the first term, as well as adding tax exemptions from income from the advice and additional wages that were part of the course of his campaign. Non -party analysts say it can add $ 3 trillion to $ 5 trillion to the 36.2 trillion dollar government debt.
If she surveyed the committee, the House of Representatives may be able to be that Mike Johnson can pressure to vote on the House of Representatives Hall after Wednesday – where Republicans keep a tight majority of 220-213.
American stock futures fell again before the Open Championship today, after the S&P 500 % closed in red on Tuesday.
The dollar has also decreased again, as traders are watching a meeting of the G7 Finance Chief community in Canada this week to obtain any signs of US pressure against the weakest dollar as part of its bilateral trade negotiations.
Britain’s pounds were the great winner – as it reached its highest level since February 2022 against the dollar after the UK inflation.
In today’s column, I discuss the recent turmoil in the Japanese bond market and how it indicates a possible change in appetite from Japanese investors who may have significant effects on the debts of the US government.
Today’s scheme
President Donald Trump’s approval rating increased to this week’s decrease to only 42 % – matching the lowest level in his new term, as Americans in general took a bleak look at his dealings with the economy. Despite the decrease in historical standards, Trump’s popularity is still higher than it was throughout his first term as president and higher than his Democratic ancestor, Joe Biden, who enjoyed in the second half of his presidency 2021-2025. The partisan division remains between those who were surveyed. But with generally about the performance of economic policy in general, the Reuters/Ipsus poll shows more than 50 % – 12 % of those who determine Republican voters and 94 % of those who vote for Democrats gave the thumb. Among those who do not have a preference for voting, is about 60 % of the economic registry so far. One in five Republicans rejected the cost of the living record.
Today’s events to watch
* Home prices in Canada (0830edt)
* The US Treasury is selling $ 16 billion in 20 -year bonds
* G7 financial ministers and bankers concentrated in Panf in Alberta, Canada
* Richmond Reserve Chairman Thomas Parkin speaks; European Central Bank Vice President Luis de Gindos and chief economist in Philip Lin speak
* American companies’ profits: Target, Lowe’s, TJX, Medrtonic, Progressive
The views expressed are the views of the author. It does not reflect the opinions of Reuters news, which, according to the principles of confidence, is committed to integrity, independence and liberation from bias.
(Written by Mike Dolan; Edited by Hugh Lawson)
