Dollar, US futures rise as 'Trump trade' undermines other assets
Updates throughout, refreshes prices at 0920 GMT
By Amanda Cooper
LONDON, July 16 (Reuters) -Global shares dipped on Tuesday as investors pondered what Donald Trump's victory would mean for the rest of the world, while the yen slid against a firmer dollar, prompting more warnings from Japanese officials after last week's suspected intervention.
Federal Reserve Chair Jerome Powell told an event at the Economic Club of Washington on Monday that recent inflation data bolstered policymakers' confidence that price pressures are on a sustainable path lower.
Markets took this as another signal the first U.S. rate cut may not be far off, but investors were more preoccupied by the fallout from the attempted assassination on Saturday of former U.S. President Trump, who nominated J.D. Vance on Monday as his vice presidential running mate.
The MSCI All-World index .MIWD00000PUS dipped 0.1% but remained in sight of record highs, while in Europe, the STOXX 600 .STOXX fell 0.3%, driven lower by a handful of earnings misses and the prospect of intensifying trade tensions with the United States under a second Trump administration.
S&P 500 ESc1 and Nasdaq futures NQc1 were up 0.1%, suggesting a modestly higher open later on.
Opinion polls show a close race between Trump and President Joe Biden, though Trump leads in several swing states that are likely to decide the election.
The Dow Jones hit a record closing high, thanks to energy and banking shares. Bitcoin jumped, gold climbed towards a record high and the yield curve steepened as investors favoured so called Trump-victory trades.
"He's already the favourite, by some margin, so he’s becoming even more of a favourite. I don’t think choosing Vance makes a big difference one way or the other," Colin Asher, economist a Mizuho, said. "It's just an indication of his confidence that he doesn't need to ‘split the ticket', because Vance is not a million miles away from Trump, politically," Asher said.
"Vance is particularly tough on China, so that’s one of the reasons for the weakness in Chinese assets today," he said.
The Shanghai Composite index .SSEC fell 0.1%, while Hong Kong's Hang Seng index .HSI lost 1.6%, having already dropped 1.5% the day before as soft economic data from China heightened the risk that Beijing could miss its 5% growth target this year, barring forceful stimulus.
"For now, the Trump trade is buy American stocks and ditch everything else," XTB research director Kathleen Brooks said.
"The S&P 500 has reached a fresh record high at the start of this week, and is easily outpacing its European stock index counterparts," she said.
Fed Chair Powell said on Monday the three U.S. inflation readings over the second quarter do "add somewhat to confidence" that inflation is returning to the Fed's target in a sustainable fashion.
Markets have now fully priced in a quarter-point rate cut from the Fed in September, with a total easing of 68 basis points (bps) expected by the end of the year. FEDWATCH
That kept a lid on the U.S. dollar, although it =USD was 0.1% firmer on Tuesday against a basket of major currencies, largely down to renewed weakness in the yen.
The dollar rose 0.3% on the yen to 158.44 JPY=EBS, eroding gains in the Japanese currency since Tokyo's suspected intervention last week disrupted the popular carry trade.
It also drew fresh warnings from Japanese officials that the government stands ready to take all possible measures to counter excessively volatile currency moves.
Data on Tuesday showed the Bank of Japan likely intervened a second time on July 12 to the tune of 2.14 trillion yen ($13.50 billion) to support the currency. This follows some $22.43 billion the central bank may have spent on intervention the previous day, according to last Friday's data.
Treasuries found some stability after Monday's sell-off, with the 10-year yield US10YT=RR easing 5 bps to 4.179%, having risen 4 bps the day before.
Gold rose 0.6% to $2,437 an ounce XAU=, nearing a record high. GOL/
Oil prices dropped, driven by concern that a slowing Chinese economy could dent energy demand. O/R
Brent LCOc1 futures fell 0.8% to $84.17 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 fell 0.9% to $81.17.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
Additional reporting by Stella Qiu in Sydney; Editing by Sam Holmes, Neil Fullick and Tomasz Janowski
To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/markets For the state of play of Asian stock markets please click on: 0#.INDEXA
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ताजातरीन समाचार
अस्वीकरण: XM Group के सत्व केवल निष्पादन वाली सेवा और हमारी ऑनलाइन व्यापार सुविधा में पहुँच प्रदान करते हैं, ताकि व्यक्ति वेबसाइट पर या उसके जरिए उपलब्ध सामग्री को देख सके और/या उसका उपयोग कर सके। इसका प्रयोजन इसे बदलना या विस्तार देना नहीं है, न ही वह इसे बदलता या विस्तार देता है। इस तरह की पहुँच हमेशा ही निम्नलिखित के अधीन रहेगी: (1) नियम और शर्तें; (2) जोखिम चेतावनियाँ; और (3) पूर्ण अस्वीकरण। इसलिए ऐसी जानकारी सामान्य सूचना से अधिक कुछ भी नहीं है। विशेष रूप से, कृपया इससे अवगत रहें कि हमारी ऑनलाइन व्यापार सुविधा की सामग्रियाँ न तो किसी चीज का अनुरोध करती हैं, न ही वित्तीय बाजारों में प्रवेश करने की पेशकश ही करती हैं। किसी भी वित्तीय बाजार में व्यापार करने के साथ आपकी पूँजी को उल्लेखनीय जोखिम है।
हमारी ऑनलाइन व्यापार सुविधा में प्रकाशित सभी सामग्रियाँ शैक्षणिक/सूचनात्मक प्रयोजनों मात्र के लिए हैं, और इनमें वित्तीय, निवेश टैक्स या व्यापार सलाह और सुझाव नहीं हैं - न ही ऐसा समझना चाहिए कि इनमें ये सब हैं; न ही इनमें हमारी व्यापार कीमतों का अभिलेख है; न ही इनमें किसी वित्तीय उपकरण में लेन-देन करने का निमंत्रण या अनुरोध है; न ही ये आपको अवांछित वित्तयी प्रोमोशन पेश करती हैं।
इस वेबसाइट में मौजूद कोई भी तृतीय पक्षीय सामग्री, तथा XM द्वारा तैयार की गई सामग्रियाँ, जैसे: अभिप्राय, समाचार, अनुसंधान, विश्लेषण, कीमतें और अन्य सूचनाएँ या तृतीय पक्षों की साइटों के लिंक, "जैसा-है-वैसा" के आधार पर बाजार के बारे में सामान्य टिप्पणी के रूप में उपलब्ध कराई गई हैं, और वे निवेश हेतु सलाह नहीं हैं। जिस हद तक कीसी सामग्री को निवेश अनुसंधान मान लिया जाता है, उस हद तक आपको ध्यान में रखना होगा और इसे स्वीकार करना होगा कि वह सामग्री इस उद्देश्य से और निवेश अनुसंधान की स्वतंत्रता को बढ़ावा देने के लिए कानूनी आवश्यकताओं के मुताबिक, तैयार नहीं की गई है, और इसलिए उसे प्रासंगिक कानूनों और विनियमों के तहत विपणन संप्रेषण माना जाएगा। कृपया सुनिश्चित करें कि आपने गैर-आश्रित निवेश के बारे में हमारी सूचना को पढ़ और समझ लिया है। पीछे दी गई जानकारी के बारे में अनुसंधान और जोखिम चेतावनी यहाँ उपलब्ध है।
