The US S&P 500 index rose by 0.3 per cent, having closed 0.5 per cent below its record high of 2,872.87 set in January. US stocks are already ascending following a strong earnings season, and Elon Musk’s announcement on social media that he was considering taking Tesla private boosted the tech-heavy Nasdaq.
Global stocks have managed to brush aside this week’s disappointing trade data from Germany and China, which have raised concerns over slowing global economic growth. Chinese imports and exports grew slower than forecast in July, at 11 per cent and 7.2 per cent respectively. This is likely to be another sign of dipping domestic demand and the result of US tariffs.
If will get worse for Beijing before it gets better as the Trump administration yesterday, 7 August agreed to impose additional tariffs on $16 billion’s worth of Chinese imports by the end of August. This will bring the total amount to $50 billion.
Finally, today the focus shifts to the Federal Reserve (Fed) and its member Thomas Barkin who is scheduled to speak at 13:45 (GMT). Market participants are expecting the Fed will raise interest rates again in September to the 2–2.25 per cent range. For now, the focus is on whether or not the Fed will hike more until the end of this year. Any suggestion from Barkin this is likely will strengthen the greenback further.