by Margaryta Kirakosian
US futures gained, with the S&P 500 on track for one of its best weeks this year, as easing trade tensions between the US and China buoyed appetite for risky assets and traders bet the Federal Reserve will step in to avoid a recession.
Contracts on the S&P 500 climbed 0.3%, after the index closed up 4.5% for the week on Thursday as the latest economic data spurred speculation the Fed will cut interest rates twice this year. Europe’s benchmark Stoxx 600 gauge also gained, heading for a fifth weekly advance.
US equities are back in favor following the de-escalation of trade tensions between the US and China. They’re now trading like last month’s rout never happened, even though uncertainty remains about the effect of tariffs on the US economy and the direction that the global trade war will take in the coming months.
“For now, we believe that the path of least resistance is still higher for risky assets,” said Mohit Kumar, chief economist and strategist at Jefferies International. “We would start turning a bit more cautious around June/July when we expect the hard data start weakening.”
The dollar weakened for a second session against major peers, with the yen and Swiss franc among the beneficiaries. The 10-year Treasury yield was lower after declining 10 basis points Thursday as traders added bets on Fed rate cuts.
Later Friday, traders will be watching negotiations around the US budget with its promise of large tax cuts and a potential impact that will have on the fiscal deficit.
Among individual movers in Europe, Richemont SA jumped 5.5% after the Cartier owner posted a sales rise. Earlier in Asia, Alibaba Group Holding Ltd. shares fell as much as 6.7% after quarterly revenue disappointed.
Elsewhere, Japan’s economy shrank for the first time in a year, illustrating its vulnerability even before sustaining the impact of Trump’s tariff measures. The yen gained 0.2% on Friday to trade around 145 per dollar. Bank of Japan official Toyoaki Nakamura, the most dovish board member, warned against hurrying to raise the benchmark interest rate.
In commodities, gold fell to extend its weekly loss as demand for haven assets waned. Oil prices declined after Iran’s foreign minister cast doubts on the status of US-Iran nuclear talks.
Some of the main moves in markets:
This story was produced with the assistance of Bloomberg Automation.
Copyright Bloomberg News
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
Chair also praised the passage of stablecoin legislation this week.
Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.