As of 9:15 a.m. (4.15 a.m. ET), global stocks jumped after the US Federal Reserve hinted it might cut interest rates later this year.
US-China trade wars have sent investors at a stand-still with fear of the market producing low gains as a consequence. Moreover, the US inticing other trade complications involving Mexico is not helping relieve tension in the stock market.
Apparently, Fed Chairman Jerome Powell pledged to ” act as appropriate” to maintain US economic growth in the face of a global trade war. His comments sent the Dow Jones Industrial Average, S&P 500, and Nasdaq up more than 2% — their biggest one-day gains in five months.
European equities climbed in morning trading with Germany’s DAX up 0.4% Britain’s FTSE 100 up 0.3%, and the Euro Stoxx 50 up 0.4%.
In Asian markets, Japan’s Nikkei 225 index jumped 1.8% while Hong Kong’s Hang Seng gained 0.5%. Meanwhile, the Shanghai Composite and SZSE Component almost flat.
US stocks are to open higher. Futures underlying the Dow Jones Industrial Average and S&P 500 were up 0.3%, while Nasdaq futures were up 0.4%.
Tech shares jumped 1% with Apple largely contributing with rising 1.5%. CEO Tim Cook said the company had not been targeted by China amid rising U.S.-China trade fears. Also, approaching Apple’s annual Worldwide Developer Conference has tech investors eyeing after all its product releases and updates.
Salesforce, meanwhile, rose 3.6% on stronger than expected earnings. Also, the utilities and real estate sectors got a boost from lower rates and the salesforce, meanwhile, rose 3.6% on stronger than expected earnings.
Oil fell in early trading with Brent crude down 0.6% at $61.60 and West Texas Intermediate crude down 0.8% at $53.
However, with the rising trade tensions between the US and China, Mexico, India, and others the likeliness of maintaining this high may not last long.
Meanwhile, Treasury Secretary Steven Mnuchin is scheduled to meet with People’s Bank of China Governor Yi Gang this weekend. This would be the first in-person meeting between key trade negotiators from the U.S. and China.