Swap contracts tied to the Fed meeting now favor a 25 basis point rate cut in September

Odaily News After a week of negotiations in Geneva, China and the United States agreed to reduce tariffs and give each other time to resolve their differences. The development marks an important milestone between the two economic giants. Big tech stocks, which have been hit hard in the sell-off, are expected to rise sharply at the open, while safe-haven assets fell, with gold, the yen and the Swiss franc all falling.
Traders are also cutting bets on the extent of interest rate cuts by major central banks this year. Swap contracts tied to the Fed meeting now favor a 25 basis point rate cut in September. Last week, these contracts suggested that the Fed would make policy changes as early as July. (Jinshi)