The New Zealand dollar gained and stocks on Wall Street advanced amid reports US President Donald Trump is eyeing up an early announcement of his planned successor at the US Federal Reserve, raising the prospect of a central banker keen on lowering rates.
The Nasdaq Composite and S&P 500 are on track to mark new highs, with chipmaker Nvidia extending its gains in record territory, while JPMorgan Chase hit a new peak as the Fed eyes up looser capital requirements for lenders.
Nike is poised to announce its latest earnings, giving an insight into a globally connected company in the tariff environment as the White House’s deadline for cutting trade deals nears – albeit one that’s open to being pushed out again.
And in the wake of the Israel-Iran ceasefire, the Tel Aviv Stock Exchange is looking for a full or partial sale to bring more international money into the Israeli economy.
Declining greenback
The kiwi dollar rose to 60.72 US cents at 7am in Auckland from 60.48 cents yesterday as the greenback declined against most currencies after the Wall Street Journal reported US President Donald Trump is considering an early announcement on the next Fed chair and is seeking someone to complement the White House’s growth policies.
Fed chair Jerome Powell has resisted pressure from Trump to cut interest rates, telling policymakers this week that the potential inflationary impact of the White House’s tariff regime remained too great a risk.
“With geopolitical risk no longer a market focus, US equities have continued to push higher, while speculation that the next appointed Fed chair will be dovish and announced early, supported a backdrop of lower US rates and a weaker US dollar,” Bank of New Zealand senior market strategist Jason Wong said in a note.
Focus is shifting to the July 9 deadline for US trading partners to cut a deal over Trump’s Liberation Day tariff regime, with European Union leaders said to be resigned to the 10% minimum import levy.
European markets were broadly stronger with the UK’s FTSE 100 up 0.2% and Germany’s DAX 30 gaining 0.6%.
Just do it
Athleticwear firm Nike is set to announce its earnings after the bell as it continues to turn its business around, having been beaten up in recent years. The company is integrated into global supply chains and exposed to the tariff regime
Stocks on Wall Street rallied with the S&P 500 up 0.8% in late trading and the Nasdaq rising 1% as the major indices approached new peaks. Nvidia hit a new record having reclaimed the title of the world’s most valuable company.
Local favourite Rocket Lab hit a new high and was recently up 12% at US$36.29. The space company successfully launched its 67th Electron mission and has another launch coming up in less than 48 hours.
Meanwhile, megabank JPMorgan Chase hit a new high as banking stocks rallied on the US Fed’s proposals to ease capital requirements for lenders.
And as Iran and Israel push for peace after their 12-day war, Dow Jones Newswires reported the Tel Aviv Stock Exchange is looking for a full or partial sale to a US or European entity with a view to attracting more American money into the Israeli economy.
Australian futures are pointing to a 0.5% gain for the S&P/ASX 200 index when it opens.
Local data today include the New Zealand consumer confidence survey, while transport tech firm Eroad and agedcare operator Oceania Healthcare are holding their annual meetings in Auckland.
Reporting by Paul McBeth. Image from Andrew Dawes on Unsplash.
