Record Highs on US Stock Markets Thanks to Trade Relaxation
Last Friday, the US stock markets reached new record highs. The main reason is the recent agreement in the customs dispute between the USA and China, which foresees a relaxation of the trade restrictions between the two largest economies in the world. China will now review and approve export applications for “controlled goods,” while the USA will, in return, lift some restrictive measures against China.
Positive Impulses from Speculations on Interest Rate Cuts
In addition to trade relaxation, speculations about possible interest rate cuts in the USA are boosting investor appetite. The moderately rising inflation is considered by experts to be no cause for concern and strengthens the expectation of a loose monetary policy. A potential agreement between the European Union and the USA could also provide positive impulses, should it occur as speculated before July 9.
Global Impact of Developments
These developments are far-reaching and improve the global market environment. The de-escalation in the trade dispute reduces uncertainties in world trade and promotes economic growth worldwide. At the same time, interest rate cuts could lower financing costs and stimulate investments. Additionally, the stock markets in Germany and the Eurozone may benefit from improved export opportunities and positive impulses from the global environment.
In summary, this news reflects a relaxation of geopolitical tensions, coupled with monetary policy hopes – both key drivers for positive investor sentiment worldwide.