Is Trump's economy the 'greatest' the US has ever seen?

Powell's statement Wednesday boosted the USA stock market as it confirmed for many investors their expectations that the Fed will cut short-term rates for the first time in a decade at its next meeting in late July.

Though US economic growth remains largely on track, and the jobs report for June showed continued strong hiring, the events of May changed US trade policy from something of a sideshow in the Fed's view to a central concern.

But now the European Central Bank is considering cutting rates lower because the landscape has changed dramatically in the last few months, as the debate not that long ago was whether to increase rates and by how much. He must also justify that shift based on economic fundamentals, not political pressures. It rose 2.1% from a year ago.

The New Zealand two-year swap rate was at 1.3123 per cent from 1.3242 late yesterday, while the 10-year swap rate was at 1.7450 per cent from 1.7400 per cent.

U.S. President Donald Trump on Wednesday ordered an investigation into France's planned tax on technology companies, a probe that could lead to the United States imposing new tariffs or other trade restrictions.

"A rate cut in July is now all but certain", said James McCann, senior global economist at Aberdeen Standard Investments. The VIX has receded as financial markets price-out marginally the risk that Friday's solid U.S. jobs data may have brought-about a change in Fed rhetoric. "It's clear from this that they won't".

"It's safe to say that investors were pleased with Jerome Powell's first day of testimony on Wednesday, with equity markets jumping on his dovish assessment", said Oanda analyst Craig Erlam. And he must do this all without admitting that the Fed misread the economy when it hiked rates a year ago.

South Korea climbed 0.6 percent, but Japan's Nikkei lagged with a loss of 0.15 percent.

After dipping on Wednesday afternoon, the Pound to Australian Dollar (GBP/AUD) exchange rate stabilised overnight, with the "Aussie" unable to extend its gains amid pessimism in regards to US-China trade talks. He added that the Fed is coordinating with other US regulatory agencies and central banks around the world to study the potential effects.

At 11:21 a.m. ET the Dow Jones Industrial Average .DJI was up 183.33 points, or 0.68%, at 27,043.53, the S&P 500 .SPX was up 6.56 points, or 0.22%, at 2,999.63 and the Nasdaq Composite .IXIC was up 11.66 points, or 0.14%, at 8,214.19. The dollar decreased to 0.9893 Swiss franc from 0.9935 Swiss franc, and it decreased to 1.3070 Canadian dollars from 1.3126 Canadian dollars.

The Stoxx Europe 600 Index declined 0.2%.

MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.2 percent, after 3 sessions of losses. The euro edged up 0.07% to $1.1257. The inflows helped drive gold to a six-year high of just under $1,440.

The dollar was also down 0.2% versus the yen to 108.26 yen, and slipped 0.1% against the Swiss franc to 0.9886 franc.

IG Markets calls the London index up around 25 points, making the price 7,556 to 7,559.

Traders are expecting a cut of at least 0.25 percentage points when the Fed concludes its next policy meeting on July 31.

West Texas Intermediate (WTI) crude futures rose 18 cents to $60.61 a barrel. A pullback will be welcomed by bullion bulls, with $1,380 an ounce level providing major support.

  • Zachary Reyes