More Trump:Japan deal is the largest deal ever. Stocks open higher and so are yields | investingLive
Trump is taking his victory lap as the trade deals keep coming and the US Treasury collects.
Meanwhile, as the posts on Truth Social stream out, the US stocks are opening higher with the:
- Dow industrial average up 0.49%
- S&P index is up 0.31%
- NASDAQ index is up 0.17%
US yields of also started to move to the upside as the idea that inflation is not going to be going lower:
- 2-year yield 3.854%, +2.4 basis points
- 10 year yield 4.375%, +4.0 basis points
- 30 year yield 4.943%, +4.0 basis points
The EURUSD is trading to new lows (higher US dollar) and that below the high price from Monday’s trade at 1.1716. And the 61.8% retracement of the July trading range at 1.17252.
USDJPY is trading near unchanged in what is shaping up as a up-down-and-up trading day as traders ponder the implications for central bank policy, inflation growth.
What I can say is the witches brew has a lot of big changes being entered into the cauldron:
- Tariff money coming into the US treasury
- Prices of goods going higher as someone has to pay
- US businesses are benefiting with defense companies getting more business. Selling airplanes is a quick way to lower trader deficits (if selling overseas, sell expensive stuff).
- Politically, farmers are encouraged by more exports overseas.
- US auto companies would have preferred higher tariffs but what do they do prices. Do they sell more cars overseas?