Global stocks are advancing today, driven by optimism surrounding artificial intelligence and anticipated interest rate cuts. Despite US President Donald Trump's tariff announcements, including a 50% tariff on copper imports set to begin on August 1, investors remain unfazed. Trump's tariff threats also impacted the Brazilian real, which slumped to a one-month low against the dollar.
In Europe, Germany's DAX index rose 0.1% and UK's FTSE 100 gained 1.2%, reaching their respective all-time highs. Meanwhile, MSCI's Asia-Pacific index added 0.5%. US stock futures saw a slight decrease, with Nasdaq futures down 0.1% after the tech-heavy index closed at a record high.
The cryptocurrency market is also seeing gains, with Bitcoin holding near a record high at $111,207, and ether up 1.8% to $2,790.9. The optimism surrounding AI and rate cuts is driving the market's momentum, with investors expecting the Federal Reserve to cut interest rates at least twice this year.
Some economists are predicting a rate cut in September if employment numbers weaken. Minutes from the Fed's June meeting showed "most participants" anticipated rate cuts would be appropriate later this year, with any price shock from tariffs expected to be "temporary or modest". As the market continues to navigate these developments, investors are keeping a close eye on the potential impact of Trump's tariff moves and the Fed's monetary policy decisions.
