Wall St Jumps on Donald Trump’s ‘Great Deal’ with China Claim, Aussie Dollar lifts Above US71c

Reuters-polled economists are predicting the cost of living to rise by 0.4 per cent rise in the September quarter — which brings annual inflation to 1.9 per cent.

‘Great deal’ with China

On Wall Street, bargain hunters were back in force, buying on the dip after steep market falls in the past month.

Market sentiment also rebounded after US President Donald Trump told Fox News that a “great deal” can be struck when he meets with China’s President Xi Jinping next month.

But he also warned that billions in tariffs would be imposed on Beijing if they do not agree on a resolution to the trade war.

Tariffs and rising costs are among the factors that have spurred a slew of disappointing forecasts from major industrials, chipmakers and other companies, adding worries over slowing corporate growth to fears of faltering global expansion.

Traders have said the uncertainty over next week’s US mid-term elections has also been a factor in the recent volatility.

US market bounce

The industrial-skewed Dow Jones index jumped 432 points, or 1.8 per cent, to 24,875.

After its overnight comeback, the Dow has lost 6 per cent since the start of October — its worst month in three years.

The benchmark S&P 500 and tech-heavy Nasdaq indices also lifted strongly, up 1.6 per cent each.

The S&P’s recovery means it is no longer in correction territory, with its October losses moderating to about 8 per cent. This marks its worst month in eight years.

“You have had such a pounding here in the month of October that at some point you would expect some bouncing to begin and hold,” said Chuck Carlson, chief executive officer at Horizon Investment Services, Indiana. – Neal Bhai Reports (NBR)

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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