{"id":86516,"date":"2025-10-20T11:27:06","date_gmt":"2025-10-20T11:27:06","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/86516\/"},"modified":"2025-10-20T11:27:06","modified_gmt":"2025-10-20T11:27:06","slug":"stock-traders-are-delighted-at-the-prospect-of-trump-losing-his-tariff-war","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/86516\/","title":{"rendered":"Stock traders are delighted at the prospect of Trump losing his tariff war\u00a0"},"content":{"rendered":"

S&P 500 futures rose 0.27% this morning, premarket, with indexes in Asia and Europe also broadly rising as traders savored strong economic growth in China, a new \u201cpro-stimulus\u201d government in Japan, and the prospect that President Trump may not be in a position to impose 100% tariffs on Beijing starting November 1.<\/p>\n

Investors are also increasingly convinced that the Fed\u2019s next rate cut is locked in. Additionally, the notion that the U.S. Supreme Court may yet rule that Trump\u2019s tariffs are illegal would be the icing on the equity cake, according to a note from JPMorgan over the weekend. \u201cThe impact on equity markets could be material as the tariff equity factor [which has weighed on some stocks] could see a sharp reversal\u201d if the tariffs are struck down, wrote Dubravko Lakos-Bujas and his team.<\/p>\n

The Nikkei 225 was up 3.37% this morning after the Liberal Democratic Party and the Japan Innovation Party formed a coalition, allowing Sanae Takaichi to become the country\u2019s first female prime minister.\u00a0<\/p>\n

China also reported GDP growth of 4.8% in Q3, above analysts\u2019 estimates. The CSI 300 rose 0.53%. The fact that the Chinese economy doesn\u2019t seem to be wounded<\/a> by Trump\u2019s tariff threats\u2014and the fact that the U.S remains dependent on China\u2019s rare earth minerals<\/a>\u2014seems to have convinced investors that tariffs on China just aren\u2019t going to happen.\u00a0<\/p>\n

\u201cIf we look at Polymarket, it\u2019s currently pointing to just a 7% chance they come into effect by November 1,\u201d Jim Reid team at Deutsche Bank<\/a> said this morning.<\/p>\n

In Europe, the Stoxx 600 was up 0.63% midmorning and the U.K.\u2019s FTSE 100 was up 0.36%.<\/p>\n

In the U.S., investors are becoming more convinced that the U.S. Federal Reserve will not put its interest rate-cutting program on hold.<\/p>\n

\u201cOn Friday, the BLS will publish the delayed CPI numbers for September. We are aligned with consensus in expecting a 0.3% MoM core read \u2013 which should further endorse a 25bp cut by the Fed next week,\u201d ING\u2019s Francesco Pesole told clients this morning.<\/p>\n

Pantheon Macroeconomics\u2019 Samuel Tombs and Oliver Allen suggested that some investors think the Fed might cut by 50 bps in December\u2014although that seems unlikely.<\/p>\n

Here\u2019s a snapshot of the markets ahead of the opening bell in New York this morning:<\/p>\n

S&P 500 futures were up 0.27% this morning. The index closed up 0.53% in its last session.<\/p>\n

STOXX Europe 600 was up 0.63% in early trading.\u00a0<\/p>\n

The U.K.\u2019s FTSE 100 was up 0.36% in early trading.\u00a0<\/p>\n

Japan\u2019s Nikkei 225 was up 3.37%.<\/p>\n

China\u2019s CSI 300 was up 0.53%.\u00a0<\/p>\n

The South Korea KOSPI was up 1.76%.\u00a0<\/p>\n

India\u2019s Nifty 50 was up 0.47% before the end of the session.\u00a0<\/p>\n

Bitcoin was up to $111.1K.<\/p>\n","protected":false},"excerpt":{"rendered":"S&P 500 futures rose 0.27% this morning, premarket, with indexes in Asia and Europe also broadly rising as…\n","protected":false},"author":2,"featured_media":86517,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[114,1657,54,85,46,4315],"class_list":{"0":"post-86516","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-china","10":"tag-donald-trump","11":"tag-il","12":"tag-israel","13":"tag-tariffs"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/86516","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=86516"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/86516\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/86517"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=86516"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=86516"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=86516"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}