World Trade - What’s moving the markets?
So many expectations from European countries and the United States. The trade talks between the U.S and China is still unresolved. But for this week, you like to know what is driving world markets this week. U.S Federal Reserve Chairman Jerome Powell cemented expectations of a rate cut later this month, as revealed by Marketwatch website. Powell raised expectations of further cuts after citing trade tensions and a weak global outlook. His remarks boosted U.S. markets and Asian stocks overnight.
On Thursday, European markets followed quickly with the Stoxx 600 SXXP, +0.12% rising 0.3% and the FTSE 100 UKX, -0.09% climbing 0.2%. But those indexes failed to make larger gains due to the U.S. response to the France’s plans for a digital tax.
James Bentley, director of Financial Markets Online said few are surprised that France’s plan to levy tough new taxes on America’s global tech titans has irked the White House.
He added that the speed and ferocity of the U.S. response—a probe that could lead to the imposition of tariffs on French goods—has brought global trade tensions right into the heart of Europe and tempered the early morning gains in European equity markets.
West Texas Intermediate crude oil CLQ19, +0.50% climbed is also seen rising above $60 per barrel for the first time since May 2018 on Wednesday following a drop in U.S. stockpiles. A hurricane threat in the Gulf of Mexico and reports that armed Iranian boats threatened a British oil tanker also supported prices.
Edited by Jude Chukwuemeka