Cramer: This market’s perception is skewed to the point where stocks aren’t necessarily safe

Cramer: This market’s perception is skewed to the point where stocks aren’t necessarily safe15 Hours AgoJim Cramer says that until two key market-moving policies change, stock market rallies can’t be trusted.


Cramer: This market’s perception is skewed to the point where stocks aren’t necessarily safe15 Hours AgoJim Cramer says that until two key market-moving policies change, stock market rallies can’t be trusted.
Cramer: This market’s perception is skewed to the point where stocks aren’t necessarily safe Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-15
Keywords: news, cnbc, companies, markets, cramer, necessarily, point, skewed, arent, safe, perception, safe15, trusted, stock, rallies, stocks, policies


Cramer: This market's perception is skewed to the point where stocks aren't necessarily safe

Cramer: This market’s perception is skewed to the point where stocks aren’t necessarily safe

15 Hours Ago

Jim Cramer says that until two key market-moving policies change, stock market rallies can’t be trusted.


Company: cnbc, Activity: cnbc, Date: 2018-11-15
Keywords: news, cnbc, companies, markets, cramer, necessarily, point, skewed, arent, safe, perception, safe15, trusted, stock, rallies, stocks, policies


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Cramer: With midterms over, we could get ‘the rallies of all rallies’ if the Fed pauses rate hikes

However, that huge pop could only materialize if the Federal Reserve under Chair Jerome Powell decides to pause its interest rate hikes, said the “Mad Money” host. “If there’s anyway, anyway that Jay Powell says, ‘You know what, we got to wait and see,’ we could have the rallies of all rallies,” Cramer said on “Squawk Box.” Later on “Squawk on the Street” Wednesday, Cramer said the market “can get on with other worries.” Cramer has been critical of Powell, agreeing with President Donald Trump, b


However, that huge pop could only materialize if the Federal Reserve under Chair Jerome Powell decides to pause its interest rate hikes, said the “Mad Money” host. “If there’s anyway, anyway that Jay Powell says, ‘You know what, we got to wait and see,’ we could have the rallies of all rallies,” Cramer said on “Squawk Box.” Later on “Squawk on the Street” Wednesday, Cramer said the market “can get on with other worries.” Cramer has been critical of Powell, agreeing with President Donald Trump, b
Cramer: With midterms over, we could get ‘the rallies of all rallies’ if the Fed pauses rate hikes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-07  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, pauses, hikes, month, uncertainty, tuesdays, midterms, cramer, expected, rallies, market, fed, powell, rate


Cramer: With midterms over, we could get 'the rallies of all rallies' if the Fed pauses rate hikes

We can now get on with the other market worries, says Jim Cramer 4 Hours Ago | 03:17

The stock market could be primed for “the rallies of all rallies” now that the midterm election uncertainty is finally over, CNBC’s Jim Cramer said Wednesday.

However, that huge pop could only materialize if the Federal Reserve under Chair Jerome Powell decides to pause its interest rate hikes, said the “Mad Money” host.

“If there’s anyway, anyway that Jay Powell says, ‘You know what, we got to wait and see,’ we could have the rallies of all rallies,” Cramer said on “Squawk Box.” “But he has to green light us.”

U.S. stocks were sharply higher Wednesday after the results from Tuesday’s election came in about as expected, lifting a cloud of uncertainty hanging over the market.

In the midterms, Democrats flipped enough seats to take the House majority from Republicans. However, Republicans were expected to keep control of the Senate and add seats.

Later on “Squawk on the Street” Wednesday, Cramer said the market “can get on with other worries.”

Cramer has been critical of Powell, agreeing with President Donald Trump, but for different reasons, that rate increases should be halted.

The Fed began its two-day November meeting Wednesday, with a rate decision set for Thursday afternoon. No change is expected this time around. But another hike is expected after central bankers meet in December. The Fed has already raised rates three times this year.

Last month, Powell said the cost of borrowing money was a long way from so-called neutral, sparking concerns about a more aggressive Fed tightening that led to October being the worst month for the S&P 500 since September 2011.

So far this month, as of Tuesday’s close, the S&P 500 was off to a much better November.


Company: cnbc, Activity: cnbc, Date: 2018-11-07  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, pauses, hikes, month, uncertainty, tuesdays, midterms, cramer, expected, rallies, market, fed, powell, rate


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Trump distancing himself from fate of GOP in House

President Donald Trump appears to be distancing himself from the fate of House Republican candidates two days before the midterm elections. Trump told reporters as he left the White House en route to a pair of rallies Sunday that he thinks “we’re going to do well in the House, but as you know, my primary focus has been on the Senate, and I think we’re doing really well in the Senate.” Trump is also telling reporters that Republican enthusiasm is off the charts and that the “level of fervor” is v


President Donald Trump appears to be distancing himself from the fate of House Republican candidates two days before the midterm elections. Trump told reporters as he left the White House en route to a pair of rallies Sunday that he thinks “we’re going to do well in the House, but as you know, my primary focus has been on the Senate, and I think we’re doing really well in the Senate.” Trump is also telling reporters that Republican enthusiasm is off the charts and that the “level of fervor” is v
Trump distancing himself from fate of GOP in House Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-04  Authors: jonathan ernst
Keywords: news, cnbc, companies, reporters, trump, fate, hes, fervor, republican, house, candidates, distancing, really, rallies, white, gop


Trump distancing himself from fate of GOP in House

President Donald Trump appears to be distancing himself from the fate of House Republican candidates two days before the midterm elections.

Trump told reporters as he left the White House en route to a pair of rallies Sunday that he thinks “we’re going to do well in the House, but as you know, my primary focus has been on the Senate, and I think we’re doing really well in the Senate.”

Trump is also telling reporters that Republican enthusiasm is off the charts and that the “level of fervor” is very high.

And he’s crediting the dozens of rallies he’s held on behalf of candidates, saying that they “have really been the thing that’s caused this big fervor” to start and to continue.

Trump will be holding rallies in Georgia and Tennessee on Sunday.


Company: cnbc, Activity: cnbc, Date: 2018-11-04  Authors: jonathan ernst
Keywords: news, cnbc, companies, reporters, trump, fate, hes, fervor, republican, house, candidates, distancing, really, rallies, white, gop


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Watch: White House briefs press for the first time in nearly four weeks

Please refresh the page if you do not see a player above at that time.] White House press secretary Sarah Huckabee Sanders on Monday is set to brief reporters for the first time in nearly four weeks, as politicians react to a mass shooting in a Pittsburgh synagogue and President Donald Trump continues to stump for Republicans in the final days before the midterm elections. At least four more Trump rallies — in Missouri, West Virginia and Florida — were scheduled between the Monday press briefing


Please refresh the page if you do not see a player above at that time.] White House press secretary Sarah Huckabee Sanders on Monday is set to brief reporters for the first time in nearly four weeks, as politicians react to a mass shooting in a Pittsburgh synagogue and President Donald Trump continues to stump for Republicans in the final days before the midterm elections. At least four more Trump rallies — in Missouri, West Virginia and Florida — were scheduled between the Monday press briefing
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Company: cnbc, Activity: cnbc, Date: 2018-10-29  Authors: kevin breuninger
Keywords: news, cnbc, companies, house, briefing, rallies, questions, nearly, watch, briefs, synagogue, report, president, shooting, weeks, press, sanders, white, trump


Watch: White House briefs press for the first time in nearly four weeks

[The stream is slated to start at 2 p.m. ET. Please refresh the page if you do not see a player above at that time.]

White House press secretary Sarah Huckabee Sanders on Monday is set to brief reporters for the first time in nearly four weeks, as politicians react to a mass shooting in a Pittsburgh synagogue and President Donald Trump continues to stump for Republicans in the final days before the midterm elections.

The alleged shooter, 46-year-old Robert Bowers, stormed Tree of Life synagogue Saturday with a rifle and multiple handguns, leaving 11 victims dead and six others wounded.

The shooting came a day after federal authorities arrested Cesar Sayoc, 56, in connection with a series of mail bombs addressed to prominent Democrats, as well as news network CNN.

In a tweet Monday morning, Trump said that “great anger in our Country” is “caused in part” by “the Fake News Media, the true Enemy of the People.”

Amid the tumultuous week, Trump continued to host raucous rallies around the country in key states to help give GOP candidates an edge in the final days before the midterms. At least four more Trump rallies — in Missouri, West Virginia and Florida — were scheduled between the Monday press briefing and the end of the week.

At the previous briefing on Oct. 3, Sanders fielded questions about allegations of sexual misconduct against then-Supreme Court nominee Brett Kavanaugh, who has since been confirmed to the nine-member high court. She also responded to an in-depth report from The New York Times on the Trump family’s taxes that accused the president of “instances of outright fraud.” Sanders called the report “highly defamatory” in that press briefing, where she took questions for about 17 minutes.


Company: cnbc, Activity: cnbc, Date: 2018-10-29  Authors: kevin breuninger
Keywords: news, cnbc, companies, house, briefing, rallies, questions, nearly, watch, briefs, synagogue, report, president, shooting, weeks, press, sanders, white, trump


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Trump’s 11th-hour midterm pitch to women: Ignore me, focus on the economy

President Donald Trump’s re-election campaign released a new ad Monday, focusing on the growing economy and aimed at suburban women voters who have been abandoning the Republican Party, according to recent polling. It’s a far more optimistic message about the midterm elections than the one the president himself has been delivering. The Trump campaign said it plans to spend $6 million to air the ad on cable, network and digital platforms over the next week. The only sign that Trump’s campaign pai


President Donald Trump’s re-election campaign released a new ad Monday, focusing on the growing economy and aimed at suburban women voters who have been abandoning the Republican Party, according to recent polling. It’s a far more optimistic message about the midterm elections than the one the president himself has been delivering. The Trump campaign said it plans to spend $6 million to air the ad on cable, network and digital platforms over the next week. The only sign that Trump’s campaign pai
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Company: cnbc, Activity: cnbc, Date: 2018-10-29  Authors: christina wilkie, leah millis
Keywords: news, cnbc, companies, youre, plans, weekthe, ad, economy, rallies, focus, women, midterm, 11thhour, trumps, campaign, trump, president, ignore, pitch


Trump's 11th-hour midterm pitch to women: Ignore me, focus on the economy

President Donald Trump’s re-election campaign released a new ad Monday, focusing on the growing economy and aimed at suburban women voters who have been abandoning the Republican Party, according to recent polling. It’s a far more optimistic message about the midterm elections than the one the president himself has been delivering. The Trump campaign said it plans to spend $6 million to air the ad on cable, network and digital platforms over the next week.

The new ad is also notable for the fact that Trump’s name is completely absent. The only sign that Trump’s campaign paid for the spot was a subtle “T” in the lower right corner of the screen, and a mandatory disclosure at the end. Trump, meanwhile, has told supporters at his raucous campaign rallies that a vote for Republicans means “you’re voting for me.”

Trump plans to hold as many as 10 campaign rallies in the next eight days, where he will likely hammer many of the same themes that he has all summer and fall. These include claims that immigration poses a threat to the country, that Democrats want socialism, and that Democratic control of Congress will result in “mob” rule.


Company: cnbc, Activity: cnbc, Date: 2018-10-29  Authors: christina wilkie, leah millis
Keywords: news, cnbc, companies, youre, plans, weekthe, ad, economy, rallies, focus, women, midterm, 11thhour, trumps, campaign, trump, president, ignore, pitch


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Euro rallies as Italian borrowing costs enjoy big drop

The euro rallied on Monday as a fall in Italian government borrowing costs after their recent surge introduced some calm into the market, while the promise of more Chinese stimulus helped offset broader political worries. Rating agency Moody’s downgraded the Italian government’s credit rating on Friday but unexpectedly kept the outlook at stable. The euro has often fallen this year when Italian government bond yields have spiked higher. The euro was also 0.2 percent higher at 1.1487 Swiss francs


The euro rallied on Monday as a fall in Italian government borrowing costs after their recent surge introduced some calm into the market, while the promise of more Chinese stimulus helped offset broader political worries. Rating agency Moody’s downgraded the Italian government’s credit rating on Friday but unexpectedly kept the outlook at stable. The euro has often fallen this year when Italian government bond yields have spiked higher. The euro was also 0.2 percent higher at 1.1487 Swiss francs
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Company: cnbc, Activity: cnbc, Date: 2018-10-22
Keywords: news, cnbc, companies, versus, costs, strategist, rallies, yen, euro, italian, enjoy, currency, risk, drop, recent, 02, big, borrowing, dollar


Euro rallies as Italian borrowing costs enjoy big drop

The euro rallied on Monday as a fall in Italian government borrowing costs after their recent surge introduced some calm into the market, while the promise of more Chinese stimulus helped offset broader political worries.

Rating agency Moody’s downgraded the Italian government’s credit rating on Friday but unexpectedly kept the outlook at stable.

That, together with comments by Deputy Prime Minister Luigi Di Maio that the government was ready to sit down with the European Union amid the ongoing row over Rome’s budget, boosted demand for Italian debt after a sharp selloff in recent weeks.

The euro has often fallen this year when Italian government bond yields have spiked higher.

The single currency rose 0.3 percent to $1.1550, hitting the day’s high and away from recent lows of $1.1433.

The dollar index dropped 0.3 percent to 95.472.

The euro was also 0.2 percent higher at 1.1487 Swiss francs, and gained 0.2 percent versus sterling to 88.26 pence.

Despite the euro’s rally, analysts said it remained at the mercy of Italian developments, with a great deal of uncertainty ahead.

“…A full diary of risk events over the next two weeks and little to argue in favour of support from the ECB (European Central Bank) in the near future, the question remains over how far the yield gap can blow out and how this could translate back into the FX market,” said Simon Derrick, chief currency strategist at BNY Mellon.

Equity markets were largely in positive territory as hopes that China’s tax cuts next year could be worth more than one percent of gross domestic product sparked a rally in Asian shares that fed across to Europe.

That helped offset geopolitical concerns about the rift between Saudi Arabia and the West over the killing of a prominent critic of the kingdom, as well as worries about Britain securing an exit deal with the EU.

Forex markets were largely quiet, although the more positive tone at the start of the week did buoy sentiment.

For the dollar, a hawkish Federal Reserve and signs of continued strength in the U.S. economy remain key drivers.

“Markets will be closely watching the release of the U.S. advance GDP number on Friday for more clarity on the direction of the U.S. dollar,” said Sim Moh Siong, currency strategist at Bank of Singapore.

The dollar rose versus the Japanese yen. The yen fetched 112.71, down 0.2 percent on the day and off a one-month high of 111.61 touched on Oct. 15.

The yen had benefited from rising risk around Brexit, the Italy budget plan and trade tensions, because investors tend to buy the Japanese currency when they are nervous.

The Canadian dollar changed hands at 1.3080 on its U.S. counterpart, within striking distance of a five-week low of 1.3132 hit on Friday on the back of weaker inflation and retail sales.

The Australian dollar, often considered a barometer for global risk appetite, traded at $0.7122, flat on the day.


Company: cnbc, Activity: cnbc, Date: 2018-10-22
Keywords: news, cnbc, companies, versus, costs, strategist, rallies, yen, euro, italian, enjoy, currency, risk, drop, recent, 02, big, borrowing, dollar


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The stock market looks like it is due for more pain, even as it teases with comeback rallies

Aggregate Bond ETF (AGG) on Wednesday – just in time for bonds to rally and yields settle back a bit. So with stocks down a quick 4 percent in a week in a way that confounded the crowd, which direction is the “pain trade” from here? But at the moment it still appears the pain trade is to the downside — or, perhaps most diabolically, up first and then down harder. The fact that the market responded to these conditions — that it “bounced when it had to” is a net positive. Thursday’s low, near 2,71


Aggregate Bond ETF (AGG) on Wednesday – just in time for bonds to rally and yields settle back a bit. So with stocks down a quick 4 percent in a week in a way that confounded the crowd, which direction is the “pain trade” from here? But at the moment it still appears the pain trade is to the downside — or, perhaps most diabolically, up first and then down harder. The fact that the market responded to these conditions — that it “bounced when it had to” is a net positive. Thursday’s low, near 2,71
The stock market looks like it is due for more pain, even as it teases with comeback rallies Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-15  Authors: michael santoli, jin lee, bloomberg, getty images, richard drew
Keywords: news, cnbc, companies, teases, trading, comeback, market, yields, sp, week, looks, rally, pain, stocks, rallies, trade, shortterm, stock


The stock market looks like it is due for more pain, even as it teases with comeback rallies

The market last week hurt investors coming and going.

The 5.3 percent crunch in the S&P 500 on Wednesday and Thursday took the index back to early-July levels — inflicting buyer’s remorse on anyone who bid into the late-summer rally — while punishing the most popular huge growth stocks of technology the hardest.

In mid-week, an ear-splitting consensus that bond yields would keep rising drove the largest one-day withdrawal from BlackRock’s $53 billion flagship iShares Core U.S. Aggregate Bond ETF (AGG) on Wednesday – just in time for bonds to rally and yields settle back a bit.

Then came Friday’s rescue rally to thwart short-term traders’ geared for a typical Friday flight from risk. The major indexes lost a tentative morning rally only to carry higher in the final hour of trading by 1.4 percent to recoup a quarter of the preceding two-day loss.

(Futures pointed to a higher openingon Monday.)

A week ago, the case was made here that Wall Street’s bears had an openingto pressure the market in the short term, and they surely seized upon it. So with stocks down a quick 4 percent in a week in a way that confounded the crowd, which direction is the “pain trade” from here?

It’s never an unambiguous call — and the market doesn’t always take the path of maximum frustration for the greatest number of investors. But at the moment it still appears the pain trade is to the downside — or, perhaps most diabolically, up first and then down harder.

First, on Friday’s comeback: It was impressive without being decisive. Stocks had quickly become substantially “oversold,” the S&P stretched far below its trend and the vast majority of stocks primed for a bounce. The fact that the market responded to these conditions — that it “bounced when it had to” is a net positive.

Thursday’s low, near 2,710 for the S&P 500, is certainly a plausible short-term low for a trading rally that can recover more of the recent losses.


Company: cnbc, Activity: cnbc, Date: 2018-10-15  Authors: michael santoli, jin lee, bloomberg, getty images, richard drew
Keywords: news, cnbc, companies, teases, trading, comeback, market, yields, sp, week, looks, rally, pain, stocks, rallies, trade, shortterm, stock


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Sterling rallies as EU’s Barnier says UK Brexit deal 80-85 percent agreed

Sterling rose half a percent to trade above $1.32 on Wednesday after European Union Brexit negotiator Michel Barnier signalled progress on a deal with the UK over its withdrawal from the bloc, as well as on the crucial Irish border question. Barnier said 80-85 percent of the withdrawal deal was agreed. He also said the European Union wants to carry out Irish border checks after Brexit “in the least intrusive way possible”. The Irish border has been a key sticking point in Brexit talks. The pound


Sterling rose half a percent to trade above $1.32 on Wednesday after European Union Brexit negotiator Michel Barnier signalled progress on a deal with the UK over its withdrawal from the bloc, as well as on the crucial Irish border question. Barnier said 80-85 percent of the withdrawal deal was agreed. He also said the European Union wants to carry out Irish border checks after Brexit “in the least intrusive way possible”. The Irish border has been a key sticking point in Brexit talks. The pound
Sterling rallies as EU’s Barnier says UK Brexit deal 80-85 percent agreed Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-10  Authors: emmanuel dunand, afp, getty images
Keywords: news, cnbc, companies, trade, irish, brexit, border, rallies, 8085, union, wants, uk, barnier, way, withdrawal, eus, sterling, deal, european, agreed


Sterling rallies as EU's Barnier says UK Brexit deal 80-85 percent agreed

Sterling rose half a percent to trade above $1.32 on Wednesday after European Union Brexit negotiator Michel Barnier signalled progress on a deal with the UK over its withdrawal from the bloc, as well as on the crucial Irish border question.

Barnier said 80-85 percent of the withdrawal deal was agreed.

He also said the European Union wants to carry out Irish border checks after Brexit “in the least intrusive way possible”. The Irish border has been a key sticking point in Brexit talks.

The pound hit $1.3206, a fresh 3-1/2 month high and strengthened 0.2 percent versus the euro to trade at 87.31 pence.


Company: cnbc, Activity: cnbc, Date: 2018-10-10  Authors: emmanuel dunand, afp, getty images
Keywords: news, cnbc, companies, trade, irish, brexit, border, rallies, 8085, union, wants, uk, barnier, way, withdrawal, eus, sterling, deal, european, agreed


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Dow jumps more than 100 points to all-time high, rallies for a second day to start fourth quarter

The 30-stock index closed 122.73 points higher to 26,773.94 for its first record close since Sept. 21. Intel climbed more than 3.5 percent, while Boeing soared to an all-time high. These gains added to the 192-point pop in the Dow on Monday to start the fourth quarter. Stocks were coming off strong gains from the previous session after Canada joined the U.S. and Mexico in a new trade deal. “The market reaction suggests investors are less worried about a trade war,” said Jennifer Ellison, princip


The 30-stock index closed 122.73 points higher to 26,773.94 for its first record close since Sept. 21. Intel climbed more than 3.5 percent, while Boeing soared to an all-time high. These gains added to the 192-point pop in the Dow on Monday to start the fourth quarter. Stocks were coming off strong gains from the previous session after Canada joined the U.S. and Mexico in a new trade deal. “The market reaction suggests investors are less worried about a trade war,” said Jennifer Ellison, princip
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Company: cnbc, Activity: cnbc, Date: 2018-10-02  Authors: fred imbert, alexandra gibbs
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Dow jumps more than 100 points to all-time high, rallies for a second day to start fourth quarter

The Russell is at ‘serious risk’ regardless of trade agreement, says chief market strategist 8 Hours Ago | 04:20

The Dow Jones Industrial Average hit a record high on Tuesday as it rallied for a second day, boosted by gains in Intel and optimism around global trade.

The 30-stock index closed 122.73 points higher to 26,773.94 for its first record close since Sept. 21. Intel climbed more than 3.5 percent, while Boeing soared to an all-time high. These gains added to the 192-point pop in the Dow on Monday to start the fourth quarter.

The S&P 500, closed flat, however, at 2,923.43 while the Nasdaq Composite fell half a percent to 7,999.55 as large-cap tech names fell more than 1 percent.

Amazon shares dropped 1.6 after the company announced it would raise its minimum wage to $15 per hour for all U.S. employees. Facebook, meanwhile, dropped nearly 2 percent.

Stocks were coming off strong gains from the previous session after Canada joined the U.S. and Mexico in a new trade deal.

The United States-Mexico-Canada Agreement, or “USMCA” for short, will see all three countries compromise on certain trade aspects. More market access will be granted to U.S. dairy farmers, while Canada has agreed to effectively cap automobile exports to the States.

“The market reaction suggests investors are less worried about a trade war,” said Jennifer Ellison, principal at BOS. “It’s more of a sigh of relief.”


Company: cnbc, Activity: cnbc, Date: 2018-10-02  Authors: fred imbert, alexandra gibbs
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Australian dollar rallies after Treasurer Scott Morrison is set to become new prime minister

Treasurer Scott Morrison will become prime minister after winning a three-way battle for the leadership of the Liberal party on Friday, with incumbent Malcolm Turnbull not contesting the party ballot. The Aussie dollar cannot stand aloof from fears of a U.S.-China trade war and the Reserve Bank of Australia has taken a cautious stance towards monetary policy,” Kadota added. The dollar held onto recent gains after U.S. and Chinese officials ended two days of trade talks without any major breakthr


Treasurer Scott Morrison will become prime minister after winning a three-way battle for the leadership of the Liberal party on Friday, with incumbent Malcolm Turnbull not contesting the party ballot. The Aussie dollar cannot stand aloof from fears of a U.S.-China trade war and the Reserve Bank of Australia has taken a cautious stance towards monetary policy,” Kadota added. The dollar held onto recent gains after U.S. and Chinese officials ended two days of trade talks without any major breakthr
Australian dollar rallies after Treasurer Scott Morrison is set to become new prime minister Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-24
Keywords: news, cnbc, companies, officials, war, minister, yen, scott, currency, morrison, dollar, australian, rallies, treasurer, trade, political, set, union, party, week, prime


Australian dollar rallies after Treasurer Scott Morrison is set to become new prime minister

The Australian dollar gained half a percent on Friday, reversing earlier losses, after the ruling Liberal party voted in a new leader, ending a political crisis that knocked investor confidence this week.

“The Australian dollar rose just as much as it shed quite a lot over the past week due to domestic political uncertainty,” Shinichiro Kadota, senior forex and rates strategist at Barclays Bank in Tokyo.

Treasurer Scott Morrison will become prime minister after winning a three-way battle for the leadership of the Liberal party on Friday, with incumbent Malcolm Turnbull not contesting the party ballot.

The Aussie dollar tumbled 1.4 percent on Thursday to become the worst performing G10 currency, after hitting its lowest since January 2017 of A$0.7202 last week, as the country was gripped by political uncertainty.

“However, things are not so rosy in the longer term. The Aussie dollar cannot stand aloof from fears of a U.S.-China trade war and the Reserve Bank of Australia has taken a cautious stance towards monetary policy,” Kadota added.

The dollar held onto recent gains after U.S. and Chinese officials ended two days of trade talks without any major breakthroughs.

The talks between the two nations ended as their trade war escalated on Thursday after a new round of U.S. tariffs kicked in on $16 billion worth of imports from China, followed immediately by reciprocal tariffs from China.

As a safe haven currency, the dollar has benefited from fears of international trade turmoil in recent months.

Investors are now focusing on a speech by Federal Reserve Chairman Jerome Powell to be held later on Friday at an annual meeting of central bankers in Jackson Hole, Wyoming.

“I think Powell may imply that, regardless of political pressure, the Fed may continue with rate hikes as long as the U.S. economy keeps expanding,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.

“If the market can confirm that, then I think the dollar’s strength will continue, especially against the yen, and dollar/yen will head for 112 or the July high of around 113.”

The dollar index, which measures the greenback’s performance against six major currencies, was little moved on Friday, trading around 95.660.

The yen rose 0.1 percent to 111.465 yen. On Thursday, the dollar had gained nearly 0.7 percent against the Japanese currency after the Fed’s minutes showed officials discussed raising rates soon.

The minutes also showed that officials had examined how global trade disputes could affect businesses and households.

The euro edged 0.2 percent higher to $1.155, recouping some losses after shedding more than half a percent during the previous session.

The single currency weakened on Thursday after Italian deputy prime minister Luigi Di Maio threatened his party would vote to suspend funding to the European Union next year unless other EU countries agreed to take in migrants.

The pound was little changed but remained on the defensive on Friday as the British government told companies trading with the European Union they would face a tangle of red tape in case of a “hard Brexit”.

Sterling last traded at $1.2812 after losing more than 0.7 percent the previous day.


Company: cnbc, Activity: cnbc, Date: 2018-08-24
Keywords: news, cnbc, companies, officials, war, minister, yen, scott, currency, morrison, dollar, australian, rallies, treasurer, trade, political, set, union, party, week, prime


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