Wall Street Hits New Record High
Wall Street’s shares pushed into a new record area on Monday as the United States is expected to reach trade agreements before a self-imposed deadline next week and extend tax cuts. The optimism is driven by the prospect of the US reaching trade agreements with other countries, which would help to avoid steep taxes.
Trade Negotiations Resume
Canada said on Sunday that trade negotiations would resume with the United States after lifting a tax that concerns US technology companies, which had prompted US President Donald Trump to stop the talks. This move has increased the optimism that other governments would do business with Trump to avoid his steep taxes, with the limit for the tariff reprieve duration on July 9.
Investor Confidence
"Investors seem confident that trade agreements are made, geopolitical tensions and a great economic break-in," said an investment analyst. "The great unknown is whether investors are correct or are simply too complacent," he added. Officials from Japan and India have extended their stays in Washington for further discussions, increasing hopes for agreements with two of the world’s largest economies.
Market Performance
In Wall Street, both the S&P 500 and the Nasdaq Composite pushed themselves into record territory on Monday. Commercial optimism also contributed to increasing most Asian stocks, but the main indices of Europe ran lower. The analyst said the "positive assisting of Wall Street follows the weekend update that the Senate has passed a procedural vote that will set up its version of the" tax cutting bill for a complete coordination of the Senate.
Tax Cuts and Economic Impact
Trump’s signature tax cutting bill extends the tax cuts from his first term at a price of $4.5 trillion and border security. The Republican President has increased the pressure to bring the package to his desk by July 4 and called out the fluctuating legislator from his party. However, there is concern about the effects on the economy, with the estimating budget office of the congress appreciating the measure, which increases almost 3.3 trillion US deficits over a decade.
Market Data and Outlook
On Monday, there was hardly a major reaction to data that further facilitated the contraction in Chinese factory activity in June after a commercial armistice in China-USA. This week, however, investors will keep an eye on data, and an important US job report on Thursday will be taken over for signs of the cuts of the pace of interests. "This could be the make-or-break moment for the expectations of the July rate cut," said an analyst.
Key Figures
- New York – Dow: Plus by 0.4 percent at 44,001.45 points
- New York – S&P 500: 0.2 percent at 6,184.09
- New York – Nasdaq Composite: 0.1 percent at 20,296.92
- London – FTSE 100: 0.4 percent at 8,760.96
- Paris – CAC 40: A falling 0.3 percent at 7,665.91
- Frankfurt – Dax: A falling 0.5 percent at 23,909.61
- Tokyo – Nikkei 225: Plus by 0.8 percent at 40,487.39
- Hong Kong – Hang Seng Index: 0.9 percent at 24,072.28
- Shanghai – Composite: Plus by 0.6 percent at 3,444.43
- Euro/dollar: $1.1747
- Pound/dollar: $1.3702
- Dollar/yen: 144.28 yen
- Euro/pound: 85.74 pence
- West Texas Intermediate: Reverse 1.1 percent at $64.78 per barrel
- Brent North Sea crude oil: 0.6 percent back at $66.40 per barrel
