U.S. Indices closed with slight gains on Monday, with the upside seen predominantly in the US session, paring weakness overnight in response to Trump’s 30% tariff letter to the EU and Mexico. Sectors were mixed, with Communication and Financial stocks outperforming, while Energy and Materials lagged. Energy’s underperformance tracked the move lower in crude prices after US President Trump announced a 100% tariff on Russia, and secondary sanctions on nations that buy Russian oil if a peace deal is not agreed to within 50 days. The 50-day period will allow time for negotiations and also denies any imminent action from the US against Russia, which is what sent crude prices lower. Also, Trump announced a military package for Ukraine via NATO after talks with Russia reached a standstill. The package marks a shift in the US’s military shipments to Ukraine, with weapons involved, including both attack and defence systems. T-notes ultimately settled flat in quiet trade with all eyes turning to the June CPI report on Tuesday, which will show whether or not Trump’s tariffs are having an impact on inflation. Fed speak after the data from Bowman, Barr, Barkin and Collins will also be eyed, particularly Bowman, to see if she continues to suggest a July rate cut is a possibility after the data. Fed speak today saw Hammack echo her hawkish tone, stating she does not see a need for near-term rate cuts and that she sees rates currently not far from neutral. In FX, the US Dollar outperformed while Antipodes and Sterling lagged, with Antipodes lightly weighed on by the lower-than-expected import data from China trade data, which saw a surge in exports led by the resumption of rare earths. Fed Member Hammack the Cleveland Fed President sees an economy that is really healthy, and when quizzed about a July rate cut, said she goes into every Fed meeting with an open mind. However, she acknowledged the Fed is hitting its goal on the employment side, but they are not there yet on inflation, and it is important to stay restrictive on monetary policy. She also noted they are pretty close to neutral, and she does not see an imminent need to cut rates. However, if the Fed sees the economy weaken, of course, the Fed will respond. Elsewhere, Oil closed lower by 2% while Gold ended Monday with 0.2% fall.
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For anyone following my Platinum Service it lost 20 points yesterday and is now ahead by 1330 points for July after closing June with a gain of 3530 points, having closed May with a gain of 3606 points, after closing April with a gain of 7685 points after closing March with a gain of 2254 points while closing February with a gain of 4180 points. January ended with a gain of 2768 points while 1997 points were gained in December. October ended with a gain of 2179 points, after closing September with a gain of 4402 points, following a loss of 301 points in August. July gained 1908 points while June saw a gain of 2074 points. The Platinum Service made a record 9619 points in October 2022. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 2300 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
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