U.S. President Donald Trump poses for a photo with Chinese President Xi Jinping before a bilateral meeting during the G20 summit in Osaka, Japan, June 29, 2019.
Kevin Lamarque | Reuters
The prospect of a US-China trade deal alone is enough to send global markets higher.
In the US on Monday, S&P500, Dow Jones Industrial Average and Nasdaq Composite Like Japan, it closed at an all-time high. Nikkei Stock Average and korean Kospi During Asian trading hours. European stocks also rose, but Stocks 600 It was one inch away from its all-time high.
And that was before the contract was officially signed.
“A lot of the forecasts around technology don’t benefit from China, so if we can bring China back into the equation, it’s probably going to be pretty optimistic for the market,” Sam Stovall, chief investment strategist at CFRA Research, told CNBC.
Nvidia, for example, released its current quarter forecast excluding H20 shipments to China, a reminder of how trade restrictions are complicating the US tech giant’s outlook.
A formal agreement between the U.S. and China to clarify and possibly ease trade terms could prompt big tech companies to raise their guidance, sparking a new wave of buying in a market already dominated by them.
Beyond silicon and software, soy is back in action. China may reportedly ease its unofficial boycott of U.S. soybeans as part of the deal, a small but symbolic concession. That will go some way to easing Scott Bessent’s pain. Not only is he the US Treasury Secretary, but he is also a “soybean farmer,” as he said in a TV interview.
In the broader trade war between China and the United States, Mr. Bessent literally meant that he owned soybean farmland, but trade tensions have made daily life more difficult for most of us, turning us all into reluctant farmers in some way. A ceasefire could bring some peace to everyone.
What you need to know today
President Trump has indicated that a deal with China is imminent. On Monday, President Trump said on Air Force One that he intends to “make a deal” with Chinese President Xi Jinping on a trade deal. The US president also hinted that a deal with TikTok could happen on Thursday.
Amazon is preparing to announce the biggest layoffs in its history. The layoffs, which will affect nearly every department, will begin Tuesday, officials said. According to Reuters, up to 30,000 employees will be affected.
Tesla could lose Musk if his salary is not approved. According to it tesla Robin Denholm, chairman of the board, warned that Musk’s ability to continue as CEO depends on whether his $1 trillion compensation package passes a vote by the board.
US stocks hit record highs. 3 major US indices and russell 2000 It rose Monday to close at an all-time high, with the S&P 500 index closing above 6,800 for the first time. The pan-European Stoxx 600 index rose 0.22%, following broad gains in global stock markets.
(PRO) When the Fed cuts rates, it’s time to put your cash elsewhere. The return on money market funds depends on current interest rates. Analysts say investors should start moving money out of cash instruments if the Fed almost certainly cuts interest rates.
And finally…
Gold rebounded on Tuesday as investors sought safe-haven assets following heightened geopolitical uncertainty stemming from fighting between Israel and Iran and US President Donald Trump’s call to evacuate Tehran.
Anindit Mukherjee | Bloomberg | Getty Images
Indians splurge up to $11 billion on gold during Diwali as bars and coins take away the shine from jewellery.
Gold worth around 700 billion rupees ($8 billion) to 1 trillion rupees ($11 billion) was sold during the five-day Diwali festival that ended on Thursday, according to the Indian Bullion and Jewellers’ Association (IBJA) and the All India Gems and Jewelery National Council (GJC).
Indians’ enthusiasm for buying gold for investment purposes is rooted in their pursuit of profit. Gold prices rose 66% this year through mid-October, then plummeted, but were still up 55% as of Monday.
— Priyanka Salve
