The financial markets saw positive sentiments on Tuesday as stocks soared in the US stock exchanges. Various developments occurred recently and knowledge of these may be of extreme importance for making more informed decisions. We have broken down these recent important happenings in following five points.
Financial Market Report-Stock Exchanges Got The Much-Needed Jolt
Tuesday saw a rise in all three US benchmark exchanges. NASDAQ led the gain with a 1.1% rise as investors continued to show trust in the market. Even though S&P is still down by 4% since the escalation of the trade war by President Trump on the fourth of May, it saw its second rise within a span of three days.
The War Is Ongoing
Trump has called on the Federal Reserve to put strategies in place in order to counter likely China’s moves. The war seems to be getting more real with every passing day; however, President Trump has also reassured to nervous traders that constructive dialogue is ongoing and results are going to be extremely well. With intensified China battle and expectations for a new battle to start with Europe, tariffs seem inevitable. President believes levies will fuel domestic growth in the near future.
No Plan To Send Troops In The Middle East
The President denied the recent NYT story that Trump administration is planning to send 120,000 troops in the Middle East for a likely war with Iran. However, Trump’s statement that he would be ready to send “a hell of a lot more” troops if needed has been keeping investors on edge of their seats. All this happened in the background of Iran-backed Houthi rebels claiming responsibility for an attack on oil tankers in the Persian Gulf this weekend. Oil prices rose as a direct result of the attack since it forced Saudi Arab to temporarily shut down its biggest oil pipeline.
Tencent and Alibaba Earning Reports
Up to 48% jump in earnings is expected to be posted by Alibaba in this quarterly earnings report on Wednesday. With Perfect World, its new game, in focus, Tencent report is also due on Wednesday. SunTrust believes ongoing trade tensions to be a short-term uncertainty only and Goldman Sachs sees companies as ‘resilient’ in the near future
Reversal of Yuan
Kyle Bass, the founder of the Hayman Capital Management, has just exited his long-term Yuan short bet claiming China has never been a friend of the United States. He cited national security risks as the reason behind the shift in his interests. The development has been widely discussed in the media.