Australian shares are set to rally after President Donald Trump signalled he’s willing to negotiate on tariffs with the European Union, easing some of the concerns stoked by the issuing of tariff letters over the last week.
All three US benchmarks reversed early losses to trade modestly higher. The Nasdaq Composite ended at a record high, its seventh such achievement since June 27. Bitcoin was fluctuating near the $US120,000 mark.
While some strategists have increased their year-end targets for the S&P 500, Morgan Stanley’s wealth management investment committee, led by Lisa Shalett, is wary. “Investors have added a new level of bravado, viewing tariffs as a nonissue.”
“With stock indexes again near all-time highs, investors appear to be stretching to embrace a Goldilocks thesis. The narrative seems to be premised on the new tax bill’s support of a capex boom, with limited tariff-related growth and inflation risk. We see S&P 500 gains beyond the 6500 6600 range as difficult to achieve, however, given ongoing puts and takes.“
Source: https://www.afr.com/markets/equity-markets/asx-to-rise-wall-st-edges-up-on-us-eu-trade-talk-hopes-20250715-p5mey1