The Sino-US trade war has ushered in some signs of relaxation. The White House economic adviser Kudlow said that the United States still expects the Chinese representatives will travel to the United States for economic and trade consultations in September. The Governor of St. Louis Fed expects that the Fed will only cut interest rates once this year.
- The Dow Jones Industrial Average closed at 26,029.52 points, up 311.78 points or 1.21%. The Standard & Poor’s 500 Index closed at 2,881.77 points, up 37.03 points or 1.30%. The Nasdaq index closed at 7,833.27 points, up 107.23 points or 1.39%.
- The White House economic adviser Kudlow said that the United States still expects Chinese negotiators will travel to the United States for economic and trade consultations in September. He also claimed that the US will “carefully observe” whether China has taken action to stop the depreciation of the renminbi.
- Former US Treasury Secretary Summers said that it is unreasonable to label China as currency manipulator. He also claimed that if the US intervenes in the foreign exchange market to lower the US dollar against the renminbi, it will damage the credibility of the United States.
- The UK’s FTSE 100 index closed at 7,171.69 points, down 52.16 points or 0.72%. The Frankfurt DAX index closed at 11,567.96 points, down 90.55 points or 0.78%. The French CAC40 index closed at 5,234.65 points, down 6.90 points or 0.13%.
- The British minister, Michael Gove, who is responsible for planning Brexit, accused the EU of inaction in trying to reach a new agreement, which further deepening the diplomatic deadlock between the two sides.
- Italian Deputy Prime Minister Salvini said that if the promised investment and tax cuts are to be realized, the Italian government will not be able to keep the budget deficit below 2%.
- Japan’s Nikkei 225 index closed at 20,585.31 points, down 134.98 points or 0.65%. The yen closed at 106.340 against the US dollar, down 0.216%.
- According to data from the Cabinet Office of Japan, after the seasonal adjustment, the initial value of Japan’s leading indicators fell by two months in June, from 94.9 in May to 93.3, which is less than the market expectation of 93.5.
- The Shanghai Composite Index closed at 2,777.56 points, down 43.94 points or 1.56%. The Shanghai and Shenzhen 300 Index closed at 3,636.33 points, down 39.36 points or 1.07%. The RMB closed at 7.032 against 1 US dollar, up 0.104%.
- The People’s Bank of China held a symposium with some foreign-invested companies in China on Tuesday. Central bank officials said that the renminbi will not depreciate significantly in the future, the normal US dollar buying and selling demand of enterprises will not be affected.
- The People’s Bank of China will release the data on foreign reserves in July today, which is expected to decline slightly. Given the small appreciation of the US dollar in July, the valuation effect may continue to exert downward pressure on the external reserve.