Stocks hit fresh record on trade optimism, dollar falls

Written by Chuck Micolajkkak

New York (Reuters) -Global shares have achieved a record number on Monday, in the hope that the American trade negotiations with the main partners will continue to advance, while the dollar fell and was appointed to the worst performance in the first half in more than five decades.

Canada stopped the digital services tax targeting American technology companies just hours before its effect, in an attempt to enhance the suspended trade negotiations with Washington.

Canadian Prime Minister Mark Carney and US President Donald Trump will resume trade negotiations in an attempt to agree on a deal by July 21, in an extension of Trump’s original deadline on July 9 due to “mutual” definitions.

The deadline on July 9 is still applied to other countries, although officials suggested that most of the deals be made by Labor Day holidays on September 1.

On Monday, US Treasury Secretary, Scott Pessant, advised that the United States can return to customs tariff levels on April 2, when Trump announced a wide range of sharp duties against countries around the world, and that the decision to extend the negotiations will return to Trump.

In Wall Street, American stocks increased modestly with the closure of the S&P 500 and NASDAQ at record levels of a second consecutive session, led by about 1 % in technology, while the consumer estimate was the worst performance in the 11 main S&P sector.

“It seems that animal spirits have fallen here,” said Roy Behrin, co -chair of Westscetter Capital Management in New York. “It is also common during the last two days of the quarter to see strength due to dressing.”

The Dow Jones industrial average increased 275.50 points, or 0.63 %, to 44,094.77, the S& P 500 31.88 points increased, or 0.52 %, to 6,204.95, and the nasdaq vehicle increased 96.28 points, or 0.48 %, to 20,369.73.

Investors will monitor a wave of labor market data at the trading week called holidays, and reached its climax in the government salary report on Thursday. The report is scheduled to be issued on an early day, while the US stock market will have a brief session on Thursday and will be closed on Friday because of the Independence Day holiday on July 4.

Some federal reserve officials, including President Jerome Powell, said that the labor market strength gives the central bank the deadline to reduce interest rates so that they can get a better feeling of the effect of Trump’s tariff on inflation.

Raphael Bustic, head of the Federal Reserve in Atlanta, said on Monday that the economy has not yet faced the full impact on the commercial tariffs of Trump and said that he still sees any of the Federal Reserve Bank this year, while the President of the Federal Reserve at Chicago Usan Volsby said that he did not see any signs of stagnation, but there is the possibility of obtaining the unemployed and exaggerating it worse.