Orlando, Florida (Reuters) – Trading Day
Understand the forces that lead global markets
Written by Jimmy McGiv, a column writer on the market
Although the uncertainty about the global tariff war in Washington and the financial expectations of the United States is still concerned, investing investors, not to mention the Trump Circus-Meccan General, global markets closed a calmly impressive week.
All standards in the United States, Asian, European and emerging in the market have increased, prompting the MSCI to a new record, while the dollar, treasury and gold revenues are generally held throughout the week.
Of course, these extensive surveying operations hide some prominent price movements in some assets, such as the collapse of Tesla price by 14 % on Thursday, as the treasury that reaches 15 basis points on Friday gave up the latest non -cultivated salary data, or sliding in dollars at a distance of a new -level minimum for three years on Thursday.
It seems that investors in a tolerant mood, ready to trust that policy makers will seek world trade tensions, slow the American financial train as they approach the edge of the abyss, and direct the global economy through this volatile water with the minimum damage.
Investors faced many major monetary political winds this week. Canada Bank stood and reduced the rates of the European Central Bank by a quarter of a percentage point, but their instructions were seen as relatively sincere. The Canadian dollar and the euro alike are strengthened.
On the other hand, the Switzerland segment to contraction increases the bet on the Swiss National Bank and the merchants are betting on the return of negative interest rates by the end of the year. Meanwhile, on Friday, the Reserve Bank in India reduced its prices by more than expected.
Federal reserve officials often continue to keep the line that uncertainty about the definitions and its impact on growth and inflation is so high that the central bank is firmly in the “waiting and celebrating” camp. If the Federal Reserve resumes the mitigation cycle, then it will not be until October, according to future price market prices.
With the Global Central Banks into a temporary stop in the summer, the focus will increase on the Trump administration’s commercial negotiations with major commercial partners such as China and Europe before July 9, when Washington ends the mutual definitions.
US President Donald Trump indicated that his 90 -minute phone call with Shi Jinping on Thursday was friendly, and there were many smiles at his meeting later in that day in the Oval Office with German Chancellor Friedrich Mirz.
But in the end, the call with Xi did not result in a tangible thing, although the US -Chinese talks will take place in London next week. Through the European Union 27 countries, any deal will be reached with Germany, not at the bilateral level.
There are many moving parts in the Washington tariff council, including but not limited to: sectoral definitions, mutual tariffs, bilateral negotiations with dozens of countries, judgment on court and counter -referee.
Surprisingly, investor glass is half full.
I would like to hear from you, so please contact me with comments in. You can also follow me on @reutsjamie and @Reutersjamie.bsky.social.
Main market movements for this week
* Tesla Rollercoasster. The shares in Elon Musk’s Evcompany decreased by 15 %, spent 155 billion dollars in the maximum market. The shares have decreased by 27 % this year, the largest number of the best 20 years in the world, giving $ 330 billion of its value. * S&P 500 is closed above 6000 points in the first times in February, and the Nasdaq Stock Exchange rises more than 2 % for a second despite the stumbling of Tesla, indicating the presence of the AI/TECH in the United States. Global stocks reached a record as the MSCI was increased by 1.5 % per week. * Precious metals shine. Silver rises nearly 10 %, the best week since September, as it has risen to the highest level in 13 years of $ 36/ounces. 10 % increase, for the second week in three. * The future contracts for American crude oil rises by 6 % to trading over $ 64/BBL, which is the largest weekly rise since September, on supply fears of ice melting in American trade tensions. * American bond revenue curves flattened, led by a sale at the end of theshort, and the restoration of some of the last slope. 2S/10s Curveflattens 11 BPS this week, which is the most since February.
Weekend scheme
Once again, you are planned for this week, both of them on the definitions.
The first shows the amount of disturbances related to the tariff that has vanished S&P 500 since Trump has sworn in. In many ways, it is striking that the index ended in the year.
The second depends on a survey of the Federal Reserve in New York, which is published this week, explaining how American companies are going to increase prices to customers. The most striking, approximately half of the service companies pass by 100 % of the definitions.
Here are some of the best things that I have read this week:
1. American expectations: not sure – Mark Zandy 2. King Trump versus the bond market – Kenneth Rojov 3. America’s retreat is the great opportunity in Europe – Bielopyokogiano Goldberg 4. American definitions and global inflation – Robin Brooks 5. How should Europe respond to King Donald? – Brad Cedar
What can the markets move on Monday?
* Japan GDP (Q1, Final) * Japan Trading, current Account (April) * China Product Prices Index and CPI (May) * China Trade (May) * Taiwan Trade (May)
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.
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(Written by Jimmy McGiv; Edit by Margareta Choi)
