Asia markets rise on Fed's rate cut hint

Asia markets rise on Fed's rate cut hint

The Australian economy has avoided recession for nearly 28 years, but a housing slump, rising unemployment and below-target inflation prompted the central bank on Tuesday to cut its key interest rate to a historic low of 1.25%. Australia's economy grew by a weaker-than-expected 0.4% quarter-on-quarter in the first three months of the year to produce an annual rate of 1.8% - the slowest in a decade. Gold has seen a almost 5 percent year-to-date advance, and a more than 2 percent rise so far this month.

The Dow Jones Industrial Average rose 188.81 points, or 0.75%, to 25,520.99, the S&P 500 gained 19.74 points, or 0.70%, to 2,823.01 and the Nasdaq Composite added 37.11 points, or 0.49%, to 7,564.23. Tuesday's performance was the three indices second-best day so far this year since January 4.

Data on payrolls showed U.S. private employers hired at the slowest pace in more than nine years in May, weakness that analysts blamed on heightening global trade tensions.

"The concern in the market is that economic data is going to worsen", said Jeff Zipper, managing director at U.S. Bank Wealth Management. But he said the anti-poverty agency foresees a potentially deeper slowdown if trade hostilities persist.

Japan's Nikkei 225 index jumped 1.8% to 20,776.10 while the Hang Seng in Hong Kong advanced 0.5% to 26,895.44.

Meanwhile, the Japanese yen was down 0.13% against the U.S. dollar at JPY108.29. South Korea's Kospi added 0.1% to 2,069.11.

"A lot bigger inventories mean people think that economic activity is slowing and again when the Fed says we're looking at rate cuts also gets people thinking the same thing".

The U.S. stock market rebounded in a huge way Tuesday after U.S. Federal Reserve chairman Jerome Powell said outright the Fed is open to easing monetary policy to rescue the battered economy amid escalating trade tensions.

Drones to deliver Amazon packages!
It also reckons that the freakish flying hexagon will begin delivering packages to customers in a matter of months. It's even smart enough to detect wires/cables in a person's backyard.

Warriors’ Kevon Looney Out Indefinitely With Broken Cartilage In Chest
The Warriors are optimistic that the swingman will play despite the injury, a league source told ESPN's Adrian Wojnarowski . Durant's return remains up in the air, while Looney is expected to miss the remainder of the Finals.

Trump's tariffs on Mexico may send manufacturers packing -- again
Congress previously passed a resolution of disapproval after Trump reallocated funding for his border wall, but Trump vetoed it. The Trump administration is seeking congressional approval of the pact, known as the United States-Mexico-Canada Agreement.

"Earlier this year, when the trade war was paramount (news) we saw dollar strength since investors thought that the main casualties will be the emerging markets", Newman said.

Mexican Foreign Minister Marcelo Ebrard said Mexico can likely reach a deal with the United States at a meeting Wednesday. Republican senators expressed opposition to the proposed tariffs.

The U.S. stock market gained in Tuesday trade, but investors remained skittish with no apparent progress made on the trade policy front and May data on U.S.

The comments signal a shift in the policy of the Fed, which has kept interest rates unchanged in 2019 after a series of hikes in 2018 and previous years.

Their remarks moved the Fed slightly closer to its first rate cut since 2008.

ENERGY: Benchmark U.S. crude shed 40 cents to $53.08 per barrel in electronic trading on the New York Mercantile Exchange.

MSCI's broad gauge of stocks across the globe was on track for a third day of gains, rising 0.6%. Brent crude oil, the worldwide standard, gave up 8 cents to $61.89 per barrel. The euro is now trading near 7-week highs around $1.1260 but further gains may be hard given renewed worries about Italy.

Related Articles