Asian stocks have enjoyed their longest rally since January, as signs that more trade deals may follow the US-Japan agreement have given bulls new confidence.
The MSCI Asia-Pacific Index rose 1%, marking its sixth consecutive day of gains, while Japan’s Nikkei 225 Index climbed 2%. U.S. Treasury yields declined slightly for the second consecutive day, with the 10-year yield rising nearly one basis point to 4.39%. Gold fell 0.1%, and the Japanese yen outperformed all G10 currencies as investors speculated that a trade deal would increase the likelihood of interest rate hikes.
The dollar retreated after US Commerce Secretary Howard Lutnick said Federal Reserve Chair Jerome Powell “must go”. According to the White House, President Donald Trump will visit the Fed on Thursday.
Stocks rose after reports that the United States was close to reaching an agreement with the European Union that would impose a 15% tariff on most products after an agreement with Japan. The progress of the trade deal confirmed investors’ previous expectations that Washington would adopt a pragmatic trade policy before tariffs had a major impact on corporate profits.
The agreement reached with Japan and the potential 15% tariff deal with the EU will boost investor confidence, convincing them that the impact of tariffs will not be as severe as previously feared. Negotiations with the US and China will still cause market concerns, but the latest news last night undoubtedly brings hope to the market that similar figures will emerge in these talks as well.
Over the past two months, Trump has reached several significant agreements, including one with Japan and made progress in resolving disputes with China, marking a relaxation of global trade tensions. These measures have reassured investors, alleviated concerns over a protracted trade war, and driven up global stock markets.
Trump also said that when setting the so-called “reciprocal” tariff rates before the August 1 deadline, he would not lower the rates below 15%.
Alphabet Inc.’s share price rose in after-hours trading as its revenue exceeded expectations. However, Tesla’s shares dropped by 4.4% as Elon Musk warned that the company would face a “tough” few quarters after reporting its biggest sales decline in a decade.
Technical analysis:
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Gold: The market sentiment has improved due to the news of the 15% tariff framework of the EU, and the gold price has dropped from above 3340 to the 3370/80 level. If there are detailed news in the evening, it is not ruled out that the price will further decline. The key price for the bulls within the day is around 3360, and 1-2 bull signals can be attempted. For detailed positions, please consult the plugin.
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the picture, please contact V: Hana-fgfg and note “666” in the message.
The Nasdaq: The intraday price liquidity is concentrated in the 23070 – 23120 range. After a pullback to the intraday low, there might be another rebound. You can try to catch it once. Additionally, if the price does not pull back and directly breaks through the 23270 – 23300 range, the long chase operation needs to tighten the risk-reward ratio to around 1:1 for protection. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg and note “666” in the message.
Crude oil: After three days of consolidation, the price may test the level of 66.80/67 again. We can attempt a breakout buy operation once within the day; for the second buy on a pullback, if there is already protection in the first wave, we can try it once more. For detailed positions, please consult the plugin.
(Crude oil 15-minute chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the picture, please contact V: Hana-fgfg and note “666” in the message.
Today’s key economic data and events to focus on:
16:00 Eurozone July Markit Manufacturing Purchasing Managers’ Index (PMI) Preliminary Value
16:30 UK July Markit/CIPS Manufacturing Purchasing Managers’ Index
18:00 UK CBI Retail Sales Expectations Index for July
20:15 Eurozone ECB refinancing rate
20:30 Canadian May retail sales
20:30 U.S. Seasonally Adjusted Initial Jobless Claims (in thousands) (to 0719)
At 20:45, the President of the European Central Bank, Christine Lagarde, will hold a press conference on monetary policy.
22:00 US New Home Sales for June
