Global Markets Steady Amid Extended Trade Truce and Anticipated Economic Data
Global markets are buoyed by an extended trade truce between the U.S. and China. Investors focus on U.S. and UK economic data which will influence monetary policy. Meanwhile, UK hiring intentions falter post-Bank of England's rate cut, and traders shift positions on the pound amid economic uncertainties.
Global financial markets saw a surge in confidence as Japanese stocks reached unprecedented heights following the extension of a trade truce between the United States and China. This agreement grants an additional 90 days for negotiation, thus averting significant tariffs that threatened to disrupt trade between the world's largest economies.
Attention turns to the forthcoming economic reports from the U.S. and UK, which are expected to shape future monetary policies. Australia's market remained near its record highs as traders mulled over a predicted quarter-point rate cut by the Reserve Bank of Australia, hinting at steady policy direction.
In the UK, economic concerns linger as recent data pointed to declining business hiring intentions, the weakest since the COVID-19 pandemic. Meanwhile, speculators are adopting a bearish stance on the pound, with positions changing drastically as the U.S. Commodity Futures Trading Commission reports increased short positions, reflecting ongoing economic uncertainty.
(With inputs from agencies.)
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