After the United States and Japan reached a trade agreement, the record-breaking rally in global stock markets gained new momentum. The deal, struck with a key trading partner, alleviated concerns over a tariff war.
Asian stocks rose by the most in a month, helping the MSCI All-Country World Index expand its gain for the year to 11%. Futures on the S&P 500 closed at their highest level on Tuesday, and then rose slightly by 0.2% on the news of tariffs. European stock futures rose by 1%. Japan’s Nikkei 225 index climbed by 3.2%, led by Toyota Motor Corporation and other automakers.
It was reported that Japanese Prime Minister Shigeru Ishiba would announce his resignation at the end of August. The Japanese yen weakened against the US dollar, while the Japanese stock market continued to rise.
Stock markets have been on the rise since their sharp fall in April, as expectations grow that countries will reach an agreement with the US before the August 1 deadline, thus avoiding major damage to corporate profits and the global economy. So far, macroeconomic data have shown little sign that tariffs are becoming a catalyst for pushing the US economy into recession.
“This is basically what we expected from Trump,” said Philip Wool, head of portfolio management at Rayliant Global Advisors Ltd. “What is truly important for Washington now is to reach a major agreement that allows both sides to claim victory in the trade negotiations, but at the same time keeps us away from the severe economic consequences that a full-scale trade war might bring.”
The US dollar index rose by 0.1%, and the yield on the 10-year US Treasury bond increased by 2 basis points to 4.36%. Oil prices edged up slightly.
Trump said that he had reached a trade deal with Japan, which would impose a 15% tariff on Japanese imports and allow the major ally of the US to invest 550 billion US dollars in the US.
More details about the initial agreement reached with Japan, including the crucial issue of whether Japanese cars and auto parts will be granted a 25% tariff exemption, have not yet been disclosed. Japan’s public broadcaster NHK, citing an unnamed government official, said that Washington will also set the tariff rate for the automotive industry at 15%.
Technical analysis:
The functions of WeChat are subject to occasional restrictions. Students who want to experience the plug-in are kindly requested to try multiple times!!!
Gold: Yesterday, we clearly reminded in the article that the bulls should pay attention to the 3370/80 area, and also reminded of the yellow area in the plugin. As expected, after sweeping the intraday liquidity in the yellow area, the price rebounded sharply. Although there is a relaxation of the tariff agreement at present, we still adhere to the intraday strategy of buying on pullbacks. The key area for bulls to focus on today is around 3410. 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.
Nasdaq: Yesterday, we clearly pointed out in the article that the rebound after the low liquidity sweep is the main operation guideline, and also gave a reminder in the plugin for the yellow area. As a result, the price completed the rebound after falling below 22,960. Continue to maintain the operation idea of low liquidity sweep within the day; at the same time, you can try the short-term rebound after breaking through 23,100/23,150, and advance protection can be pushed with a profit-loss ratio controlled around 1:1. 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: The price did not trigger the entry signal on our plugin. It basically fluctuated in a narrow range between the blue and yellow zones, without showing any momentum or directional signals. For today, we will maintain the operation configuration from yesterday and wait for a breakthrough signal or a low liquidity sweep signal to appear. 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.
Key economic data and events to focus on today:
22:00 US June NAR Existing Home Sales (MoM) (Seasonally Adjusted)
22:30 U.S. EIA Crude Oil Inventory Change (in thousands of barrels) (as of 0718)
