Trump raises tariff demands in EU trade talks to 15-20% - FT
Wall Street traded in mixed fashion on Monday, with the S&P 500 adding 0.10%, on track to set a new record high for the 24th time this year. The Nasdaq 100 also reached an all-time high of 18 719, up 0.60% on the back of a tech rally, while the Dow Jones fell more than 150 points, weighed down by a 3.50% loss in JP Morgan Chase (NYSE:JPM) shares. Investors are searching for more clues regarding the timing of the Federal Reserve's (Fed) interest rate cuts, with several officials slated to speak and FOMC minutes due out this week.
European markets closed slightly higher on Monday, with the STOXX 50 and STOXX 600 each up roughly 0.20% as investors analysed new corporate earnings and Fed officials' comments. Atlanta Fed President Bostic said that future US interest rates could reach levels equivalent to the 1990s, with only one rate drop expected in 2024. Vice Chair Barr also supported maintaining rates steady, citing weak Q1 CPI data. Furthermore, Energy stocks were in the green, as geopolitical uncertainty in the Middle East pushed prices higher.
Asian stock markets rose on Monday, matching Wall Street's gains, which saw the Dow close above 40 000 for the first time. In China, the central bank held its one- and five-year lending prime rates steady at 3.45% and 3.95%, respectively, in line with predictions. Late last week, China launched a sweeping package to help its faltering housing market, including loosening credit laws and encouraging local governments to acquire unsold properties. Investors are also anticipating a raft of economic releases in Japan this week, including trade, inflation, and business activity data. Shares in Australia, Japan, South Korea, Hong Kong, and China all rose.
The FTSE/JSE All Share Index rose about 0.70% to close at 80 073 points on Monday, hovering near the highest level since February 2023, with global markets firmer as focus this week falls on minutes from the Fed’s recent monetary policy meeting. Meanwhile, investors are carefully monitoring commodity markets amid increased caution around ongoing geopolitical tensions in the Middle East following the crash of the helicopter transporting the Iranian president over the weekend. The rand touched the best levels since December on the day, firming R18.10/$. At 18h00, the rand had weakened 0.17% to R18.19/$, 0.15% to R19.76/€ and 0.26% to R23.13/£.
Also in the commodities market, gold and silver were higher while copper surged to a new record on Monday in anticipation of supply shortages, reported Bloomberg. Gold prices also benefitted from bets that the Fed will cut rates this year. Oil prices fell less than 1% on Monday, as Fed officials suggested they were waiting for more evidence that inflation was falling before cutting interest rates. “Officials said they're not yet ready to say inflation trends are again moving sustainably back to the central bank's 2% target, weighing in after data last week showed a welcome easing in consumer price pressures in April,” Reuters reported.
