News

Mexico Banxico Interest Rate Decision meets forecasts (7.25%)

The Dow Jones Industrial Average (DJIA) tumbled 400 points on Thursday, falling to its lowest valuation in nearly two weeks as equity indexes were crushed underfoot by a broad pivot out of AI tech stocks.

Meta projected that about $16 billion in 2024 revenue came from running ads for scams and banned goods, according to a Thursday report from Reuters. 

Gold price advances on Thursday after reaching a daily high of $4,019, but retreats below the $4,000 mark even though the US Dollar and US Treasury yields tumbled. At the time of writing, XAU/USD trades with gains of over 0.10% at around $3,985.

The Euro (EUR) strengthens against the US Dollar (USD) on Thursday amid renewed weakness in the Greenback. At the time of writing, EUR/USD is trading around 1.1543, rising to a five-day high after slipping to a fresh three-month low on Wednesday.

Nikkei is reporting that:

• Discrepancies have emerged over the details of China’s agreement with the US to pause rare earth export restrictions.
• Washington says pass controls will also be eliminated. China has not announced they were on board with that.

There seems to be a bit of a disconnect.

Earlier today, the Federal Register posted the details of an Executive Agreement whereby it said:

Under the Arrangement, the
PRC has committed to, among other things, postpone and
effectively eliminate the PRC’s current and proposed coercive
global export controls on rare earth elements and other critical
minerals, and address Chinese retaliation against United States
semiconductor manufacturers and other major companies in the
3
semiconductor supply chain. The PRC has also committed to
purchase United States agricultural exports integral to the
economy and general welfare of the United States, including
soybeans, sorghum, and logs. And the PRC has committed to
suspend or remove many retaliatory actions against the United
States, including suspending tariffs on a vast swath of United
States agricultural products until December 31, 2026, and
extending the PRC’s market-based tariff exclusion process for
United States imports until November 10, 2026.
The United States, in turn, committed to, among other
things, maintain the suspension of heightened reciprocal tariffs
on imports of the PRC until 12:01 a.m. eastern standard time on
November 10, 2026.

It was added that:

I determined that it was necessary
and appropriate to address the emergency declared in Executive
Order 14257 by suspending application of the heightened
ad valorem duties imposed on the PRC under Executive Order
14257, as amended, and to instead impose on articles of the PRC
an additional ad valorem rate of duty of 10 percent.

This article was written by Greg Michalowski at investinglive.com.

In a podcast interview, newest Fed Governor (Trump appointee and dove)Miran says:

• I expect we will cut in December

• I want to get to neutral in 50 basis-point increments; a lot of my colleagues want 25 bps increments

• Don’t need 75 basis point cut, don’t need to make up for lost ground on cuts

• Labor market deterioration is gradual, not accelerating

This article was written by Greg Michalowski at investinglive.com.

Sacks’ comments came after OpenAI CFO Sarah Friar mentioned a federal “backstop” during a conference.

USD/CHF weakens on Thursday, down 0.35% around 0.8070 at the time of writing. Risk-off sentiment dominates the markets, supporting demand for safe-haven assets such as the Swiss Franc (CHF), while US political uncertainty continues to weigh on the US Dollar (USD).

The deals are among the most politically significant announcements to date in the Trump administration’s efforts to rein in high U.S. drug costs.