Powell Pushes Rebound in Global Equities | Trump Prepared to Impose Mexican Tariffs
Published June 5, 2019
After Federal Reserve Chair Jerome Powell stated that the central bank may be moving towards the direction of a rate cut yesterday, there was an immediate response in US equities with more than a 2% gain in the S&P 500 Index which continued into Asia trading. The MSCI Asia Pacific Index also climbed 1.1% while Japan’s TOPIX index closed 2.1% higher on the news.
President Trump has continued to warn that he is completely serious regarding his threat to impose 5% tariffs on goods from Mexico. Later this afternoon, Mexican Foreign Minister Ebrard will be meeting officials at the White House in an attempt to find a way to placate the president.
Commerce Secretary Wilbur Ross said the US will take steps to ensure it doesn’t get cut off from supplies of rare earth minerals despite China’s strategy to impose export controls on the materials. This is another sign of the rising tensions between the two nations; China seems prepared to target US corporate interests in the country.
Final May PMI data for the euro area was published this morning when the composite reading was revised slightly higher to 51.8. This comes as manufacturing continues to be a drag on growth prospects in all major euro area nations.