Global stocks rally, bond yields plunge after Fed hints at rate cuts

TOKYO - A gauge of global stock markets edged near this year’s peak while benchmark U.S. Treasury yields and the dollar dropped after the Federal Reserve signaled possible interest rate cuts later this year.

The MSCI ACWI, which incorporates readings of 49 equity markets across the world, gained 0.2%, having recovered a large part of its losses made after U.S. President Donald Trump threatened new tariffs on all of China’s imports last month. On Wall Street, the S&P 500 gained 0.3% to 2,926, just 19 points off its record closing high hit on April 30.

Many investors viewed the overall tone as more dovish than their expectations, sending the 10-year U.S. Treasuries yield to as low as 1.986%, its lowest level since November 2016.Money market derivatives, such as Fed funds futures and overnight indexed swaps, are fully pricing in a rate cut of 25 basis points at next policy review on July 30-31, with about one-third chance of a bigger 50 basis point cut.

“While we expect ‘insurance’ rate cuts this year, we think the timing and magnitude of any policy easing is uncertain and somewhat dependent on U.S.-China trade relations,” said Andrew Wilson, CEO of Goldman Sachs Asset Management for EMEA and global Head of fixed income.

Stock manipulation by the president.

When investors demand more return in short term than in long run, they think US headed for recession, indicates an inverted yield curve. Lasting for a quarter accurate 100% of the time, predicted past 7 recessions. U.S. debt, more than 100% debt-to-GDP ratio vs 77% tipping pt.

Bond $ is moving into alternative investments for diversification.

Yeah, then the fat cats will have inside knowledge as to when the rates will inevitably go up due to the enormous deficit 45 hooked his “feigning fake friends” up with and they’ll know EXACTLY WHEN to sell, sell, sell their stocks. We can’t have anything nice.

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