Latest news with #GavinFriend
International Business Times
24-07-2025
- Business
- International Business Times
Asian Markets Rise on Trade Optimism and Strong US Earnings
Markets across Asia rose on Thursday as optimism from Wall Street and the promise of more U.S. trade deals fueled trading. The MSCI Asia-Pacific index (excluding Japan) climbed 0.4%, to its peak since the year before. Japan's Nikkei 225 continued its surge, moving within a hair's breadth of its all-time high as Singapore's STI and Japan's Topix both breached heights. x Recent trade agreements with Japan, Indonesia, and the Philippines have lifted investor confidence. Now it is talking with the EU, raising the possibility of a bigger deal. European stock futures were swept along with the optimism: Euro Stoxx 50 futures rose 1.17%, DAX futures 1.15%, and FTSE futures 0.39%. "Markets seem to be ready to throw caution aside on the back of significant trade deals," said NAB strategist Gavin Friend. Trump's Fed Visit Sparks New Speculation In a surprise, President Trump is scheduled to visit the Federal Reserve on Thursday, two days before the next policy meeting. Analysts speculated that the visit might be intended to pressure Federal Reserve Chair Jerome Powell to lower interest rates. The Fed is overwhelmingly anticipated to keep rates unchanged next week. The 10-year U.S. Treasury yield was unchanged at 4.3937%, while the 2-year yield traded at 3.8908%. The dollar fell 0.31% against the yen to 146.03 and dipped briefly on the dollar index, down to 97.156. Earnings and Wall Street Drive Momentum U.S. stocks rose strongly on Wednesday. The Dow rose 1.1%, the S&P 500 climbed 0.76%, and the Nasdaq gained 0.6%. To date, 23% of S&P 500 companies have reported results for the second quarter, with 85% of them beating expectations, according to LSEG data. In Asia, shares of the South Korean microchip maker SK Hynix and the Indian technology services company Infosys both provided optimistic earnings forecasts, setting aside concerns about tariffs. The focus of investors now turns to reports from big U.S. companies and the ECB's rate decision later on Thursday. The ECB is expected to pause after seven straight cuts. Traders anticipate one more cut by December. Trump's earlier threat of a 30% tariff on EU goods could potentially be softened down, as officials indicate that a compromise of a 15% flat rate is in the works. Commodities Steady Ahead of Central Bank Moves Oil prices rose on Thursday following a sharp drop in the United States' crude stocks and amid expectations of potential trade deals lifting demand for crude. American crude gained 0.52% to $65.59 a barrel. Spot gold eased marginally to $3,382.79 an ounce as safe-haven demand waned.
Reuters
24-07-2025
- Business
- Reuters
Asian stocks extend gains on trade hopes as Nikkei nears record
SINGAPORE, July 24 (Reuters) - Stocks in Asia extended gains on Thursday as optimism on Wall Street over trade deals and corporate earnings shored up investor confidence across the region, while the euro was steady ahead of European Central Bank policy meeting. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab was up 0.4%, hitting a near four-year peak after U.S. stocks ended the previous session at a record high. The bullish mood is set to continue in Europe. The pan-European futures were up 1.17%, German DAX futures were up 1.15% and FTSE futures were up 0.39%. Tokyo's broad Topix gauge of shares (.TOPX), opens new tab and Singapore's benchmark index (.STI), opens new tab both crossed above previous highs, while the Nikkei 225 (.N225), opens new tab extended Wednesday's gains to within reach of its record high hit last year. Traders are speculating that the U.S. may soon reach a trade agreement with the European Union, after the Trump administration struck deals with Japan, the Philippines and Indonesia earlier this week. "There's nothing like a trade deal with a big trading nation - and deals with the Philippines and Indonesia, and the prospect of a deal in the offing for Europe - for markets to throw away all their caution," NAB's senior market strategist Gavin Friend said on a podcast. "Yields are higher and everything seems rosy at the moment." Markets were relatively subdued after the White House said that U.S. President Donald Trump will visit the Federal Reserve on Thursday, a surprise move that escalates tension between the administration and Chair Jerome Powell. The Fed is expected to hold rates steady next week. "The purpose of Trump's visit to the Fed is unclear but it may be a move to pressure Powell and the Fed to cut rates and it comes just a few days before the next Fed policy meeting at the end of this month," said Vasu Menon, managing director of investment strategy at OCBC. The yield on benchmark 10-year Treasury notes was steady at 4.3937%. The two-year yield , which rises with traders' expectations of higher Fed fund rates, touched 3.8908%. The dollar dropped 0.31% against the yen to 146.03 . It is still some distance from its low this year of 139.89 in April. The euro last fetched $1.1774, after hitting a more than two-week high earlier in the session. The dollar index , which tracks the greenback against a basket of currencies of other major trading partners, was down at 97.156. The gauge has dropped over 10% this year as investors scurry for alternatives in the wake of Trump's erratic trade policies. Second-quarter earnings are well underway, with 23% of the companies in the S&P 500 having reported. Of those, 85% have beaten Wall Street expectations, according to LSEG data. In Asia, South Korean chipmaker SK Hynix ( opens new tab and India's Infosys ( opens new tab provided rosy outlooks in their latest earnings reports, shrugging off U.S. trade uncertainty. Investors will watch out for the policy decision from the ECB later on Thursday as trade talks between Washington and Brussels continue. The central bank is expected to keep interest rates on hold, pausing after seven straight cuts. Investors generally expect one more ECB rate cut by the end of the year, most likely in December. Trump has threatened to impose a 30% duty on EU goods but two diplomats said on Wednesday the EU and the U.S. were heading towards a deal that would result in a broad tariff of 15% applying to EU goods. Oil prices rose on speculation the trade deal would support global growth and after a sharper-than-expected decline in U.S. crude inventories. U.S. crude ticked up 0.52% to $65.59 a barrel. Gold was slightly lower as easing trade tensions dented demand for safe-haven assets, overshadowing support from a weaker dollar. Spot gold was traded at $3,382.79 per ounce.
