Stocks Rise On Several Indicators
The DJIA is enjoying its sixth straight day of gains, up 0.41%. The NASDAQ is leading the major indexes, up 0.88%, and the S&P 500 is up 0.51%. The gains come on several bits of news:
First, China has waived 25% tariffs on 16 U.S. products. This marks the first time Beijing has given concessions since the trade war began. Investors viewed the move as a small but hopeful gesture. The products do not include soybeans or meat, so the impact on markets was minimal.
Rates markets were fairly sidelined awaiting the most watched European Central Bank (ECB) meeting tomorrow. Global equities continued the rally that’s been in play for the last week as additional monetary stimulus is widely expected from the ECB in the form of a 10 basis point cut, according to economists polled by CD Media.
Oil Continues To Lose
Geopolitics keeps oil front and center as it continues its decline begun yesterday after John Bolton was fired from his National Security Adviser position after 18 months. Shedding some light on the tumult around yesterday’s decision, President Trump made comments indicating that he had “weighed easing Iran sanctions,” and that conversation prompted pushback from Bolton that culminated in the loss of his job.
Brent crude futures are down 2% on the day, and off 4.5% since the Bolton news was announced midday on Tuesday.