Stock Market Overview – Stocks Surge on Potential China Deal

Stocks surge ahead of Fed
David Becker
Financial concept of growth on the American Stock Exchange.

US stock surged on Tuesday following Tweets from US President Donald Trump who said that he planned on having an extended conversation with Chinese President Xi at the G20 gathering later this month. The markets are unsure whether this means there will be more people to discuss trade or a longer conversation, but riskier assets moved higher led by large cap tech shares.

Most sectors were higher, led by technology shares, Utilities and Consumer Staples bucked the trend. Crude oil prices rebounding sharply, as Saudi Arabia said they would cut output and asked other OPEC countries to consider output cuts ahead of the next OPEC meeting. These also ask those who were producing more oil to cut back on their production.

Apple shares rallied more than 2%, and Alphabet was up more than 1.5%. Facebook shares surged on the open but gave back most of its gains following an announcement that the company was launching a cryptocurrency called Libra.

Facebook Reveals Libra

Facebook formally revealed plans to launch a cryptocurrency called Libra, promising a secure blockchain-based payment system backed by hard assets. Facebook named early Tuesday a series of big, corporate partners, including financial-services heavyweights Mastercard Inc. and PayPal Holdings Inc. and tech giants Uber Technologies Inc. and Spotify Technology S.A. that it said will help it create a secure, scalable and reliable cryptocurrency.

Boeing Lands Deal

Boeing Co. won a landmark 737 MAX order from British Airways parent IAG on Tuesday, ending a sales drought in the wake of the grounding of the aircraft following two fatal crashes. International Consolidated Airlines Group SA, as IAG is formally known, said at the Paris Air Show it had signed a letter of intent for up to 200 Boeing 737 MAX planes. It would buy the 737 MAX 8, the model that crashed in October and March, as well as the larger 737 MAX 10.

ECB President Draghi Makes Dovish Commentary

The Euro slipped on Tuesday ahead of Wednesday Fed meeting as ECB President Mario Draghi said additional stimulus is needed if economic conditions do not improve. As the dollar gained traction President Trump began to tweet about how unfair it is that the dollar is gaining strength because of European weakness and their central banks willingness to drop interest rates. Trump wants the Fed to begin to cut rates and to start quantitative easing to buoy the US economy ahead of the US elections.

Draghi noted that the ECB has the capability to further reduce interest rates as well as quantitative easing as part of their arsenal. It appears that Draghi is setting the table for his successor to be able to use additional monetary policy to boost economic growth.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US