Stock markets fall due to tariff fears, dollar weakens, ECB unlikely to cut rates.

From Investing.com: 2024-07-18 05:40:00

Stock markets took a hit due to fears of increased tariffs on Chinese goods, resembling the period before the 2007 Fed rate cut. The dollar is weakening as the market awaits the Fed’s rate cut decision and reacts to Trump’s economic plan.

ECB meeting today is not expected to result in a rate cut, as the rift between hawks and doves within the bank continues. President Lagarde is unlikely to pre-commit to a September rate cut, considering the risks involved.

The pound is unfazed by weaker UK data, with expectations of a rate cut in August by the BoE diminishing. The focus shifts to the September BoE gathering as the economy shows signs of improvement.

The yen continues to rally against the dollar, as the BoJ intervenes frequently to counter excessive moves. Chinese Communist Party schedules a press conference following the Third Plenum, with speculation on potential support measures for the housing sector.



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