"S&P 500 futures rose 0.27% this morning, premarket, with indexes in Asia and Europe also broadly rising as traders savored strong economic growth in China, a new "pro-stimulus" government in Japan, and the prospect that President Trump may not be in a position to impose 100% tariffs on Beijing starting November 1. Investors are also increasingly convinced that the Fed's next rate cut is locked in."
"Additionally, the notion that the U.S. Supreme Court may yet rule that Trump's tariffs are illegal would be the icing on the equity cake, according to a note from JPMorgan over the weekend. "The impact on equity markets could be material as the tariff equity factor [which has weighed on some stocks] could see a sharp reversal" if the tariffs are struck down, wrote Dubravko Lakos-Bujas and his team."
Global equity futures and major regional indexes rose as investors reacted to stronger-than-expected Chinese Q3 GDP, a pro-stimulus coalition in Japan, and reduced odds of sweeping U.S. tariffs on China. The Nikkei surged after a coalition enabled Sanae Takaichi to become prime minister, while China's CSI 300 and other Asian benchmarks advanced. Market optimism was supported by low market-implied odds that tariffs would take effect and concerns over U.S. dependence on Chinese rare earths. European markets also climbed. Investor conviction around a near-term Federal Reserve rate cut strengthened ahead of delayed U.S. CPI data expected to support a 25bp cut.
Read at Fortune
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