Dow Jones rises while US -Chinese tariff discounts send markets madness

• Dow Jones rose more than a thousand points of closing prices last week after the opening of the United States of Chinese trade talks during the weekend.
• American definitions on Chinese goods are reduced to 30 %, while Chinese definitions on American imports are reduced to 10 %.
• The temporary tariff discounts is scheduled to enter into force from Tuesday and the last 90 days.

The DJIA industrial average increased on Monday, with more than a thousand points and climbing again over the handle of 42000 for the first time since early April. Decline US (The United States) and China have strengthened investor confidence that the Trump administration will continue to get rid of its position on commercial policy.

Markets get a tariff preparation … now

The United States and China have agreed to trim their definitions on all imports in both directions for the next 90 days. The United States will continue to charge a 10 % flat “global” tariff, in addition to an additional 20 % that has been eaten due to the Fintanel epidemic. Despite the amount of our spending on the police and border control, the Trump administration continues to be responsible for the drug crisis at the feet of foreign governments. China has agreed to trim the definitions of American goods to 10 % for a period of 90 days.

Customs tariff cuts come in a decisive time: the first batch of inflation data that includes the beginning of the “mutual” mutual tariffs of the Trump administration this week is released. The US consumer price index (CPI) inflation will be released for April on Tuesday, as the average market expectations expect to make an increase in both inflation measures in the consumer and basic price index for this month. YOY CPI is still expected to remain fixed during the previous annual period, with Core Core CPI expectations at expectations at 2.8 % on an annual basis.

The primary inflation in the consumer price index remained stuck over the target inflation rate of the Federal Reserve (Fed) of 2 % for four consecutive years. Despite the significant decrease from its 6.6 % decades peak in 2022, the Federal Reserve struggled to provide discounts in interest rates at the speed that the markets want. Apply for inflation to the goal largely, According to policy makers at the Federal ReserveThe market expectations are to reduce the rate early in July.

The hopes for lowering prices are paid to another month

Most price traders expect now feeding To continue the policy contract Rates Apartment until at least September. According to the Fedwatch tool for the CME, price markets are pricing approximately 60 % that the Federal Reserve will remain in July, which is a sharp opposite of reducing a quarter -point rate on July 30, which lasted until recently last week.

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Dow Jones price expectations

On Monday, the tariff rally reinforced the Dow Jones back above the 200 days moving average (EMA) near 41,500 for the first time since early April and DJIA pushed north of the main price handle 42000 in this process. DOW recovered nearly 16 % after it came out of 36600 after the post -trace announcement on April 2. However, the main stock index remains 6 % of the ever restoring levels in the north of the 45,000 level.

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