Trump previously said that China would face additional import tariffs if Xi didn’t show up to the summit.
For the month, the Dow and the S&P are up 6.7% and 6.2%, respectively. The Nasdaq is on track for a 7.1% jump this month. At this point, June is the best month for stocks since January.
Earlier in the day, European and Asian stocks had started to climb, after European Central Bank President Mario Draghi hinted there could be more monetary easing in the eurozone to boost the economy. US stock posted a stronger open in response.
The euro, on the other hand, isn’t taking the news so well and is down 0.1%, buying $1.1200. Currencies tend to strengthen in a higher interest rate environment. This was one of the key drivers behind US dollar strength last year.
“This week is supposed to be all about the Fed, but before Chairman Powell will have the opportunity to deliver a dovish message on Wednesday evening, ECB President Draghi has moved the markets by signaling that the eurozone could soon see a fresh dose of monetary policy stimulus,” said Jane Foley, senior FX strategist at Rabobank, in a note.
The Federal Reserve is kicking off its two-day meeting today, before it culminates in the monetary policy update and press conference tomorrow. With expectations for an interest rate cut in July at 88%, up from 86% yesterday, according to the CME FedWatch tool, investors will be watching Fed Chairman Jerome Powell’s language when he talks about future policy strategy.
Market participants expect him to be careful with his wording, but that the word “patient” — which he introduced at the beginning of the year to describe the central bank’s approach to future policy decisions — will disappear.