In the eyes of the market, the dovish remarks of Jerome Powell, chairman of the Federal Reserve, have determined the rate cut in September, while the prospect of Trump's return to the White House has also made related trading active in the minds of investors. Product structure, 10-30 billion yuan products operating income of 401/1288/60 million yuan respectively.
In his last public comments before the Federal Reserve's July 30-31 policy meeting, Powell remained cautious but said recent inflation data suggested the inflation rate was likely to return to the Fed's 2% target.
"We have had three good numbers and averaging them together, they're pretty good," he said at an event on Monday.
His statement paved the way for a rate cut in the near future, but Powell made it clear that he does not intend to send any specific signals about the timing of the rate cut.
These remarks are enough to change market expectations for interest rates again, with traders expecting 68 basis points of easing this year. According to the FedWatch tool of the CME Group, the rate cut in September is now fully priced in.
The next meeting of the Federal Open Market Committee is expected to be held on July 30-31, and it is expected that the Fed will keep interest rates unchanged. Traders are betting the Fed will cut interest rates at least twice before the end of the year, starting in September.
The dollar is overall unstable, weak after Powell's remarks, but slightly stronger in the Asian session on Tuesday as investors ponder what Trump's election as president may mean for inflation and interest rates.
Trump's victory swept through the trading floor.
Trump made a dazzling appearance in his Republican National Convention debut on Monday night, warmly welcomed by supporters within the party. Two days ago, a bullet grazed the former president's right ear.
The attack intensified market expectations of Trump's victory in November's election, with cryptocurrencies surging, gold approaching historic highs, and the yield curve steepening as investors bet on so-called victory trades for Trump.
Two days after he narrowly avoided assassination, Trump announced on his social media platform Truth Social that Ohio Senator JD Vance is his Vice President nominee. Trump said, "After careful consideration and having considered many other outstanding candidates, I have come to the conclusion that the person best suited to be Vice President of the United States is Senator Vance from Ohio, a great state."
Vance is nearly 40 years younger than 78-year-old Trump, marking a potential generational change in the Republican Party and injecting new energy into the party's efforts to appeal to working-class voters.
Vance believes China poses a significant challenge to the United States in terms of economics, technology, and military, and is a bigger threat than Russia. He also supports raising tariffs on Chinese goods and strengthening U.S. domestic manufacturing. He advocates taking a tough trade policy stance towards China, supporting higher tariffs on Chinese goods, and believes that the United States needs to reduce its dependence on Chinese manufacturing and strengthen domestic manufacturing.
In Europe, futures suggest that the stock market will open fairly flat on Tuesday, with little guidance from the economic calendar, with Trump and Powell once again driving market trends.
After Burberry warned of possible losses and canceled dividends on Monday, luxury stocks will be in focus. The European Luxury Stock Index fell 3% on Monday, its biggest percentage drop in 10 months.