US index futures rose higher into record territory, as European stocks pared muted gains after the EURUSD rose above 1.17, pressuring exporters, while Asian shares were broadly higher, but the main theme of the session was another day of USD weakness.
Amid reports that pressure is mounting on the Securities and Exchange Commission to act on Elon Musk's "funding secured" Tweet, there is also another camp making the argument that Musk "might not have to worry" at all about the SEC.
Energy has transformed geopolitics so that it plays out as geoeconomics, since financial gains or losses are directly related to a country’s position within the hierarchy of political influence. Today, power emanates not from the territory one can occupy, but from the spread of markets one can control or influence.
"As of today, the Fed’s independence is guaranteed, but Trump has the ability to make his own appointments to the Fed board. If Fed independence does get threatened, you’re going to see a bond market reaction."
European and Asian stocks jumped and US equity futures climbed for a third day on Tuesday, following blowout earnings from Google and as China unveiled plans to launch fresh fiscal stimulus to support the world’s second-largest economy.
With many traders on vacation, the algos will be kept busy with a busy weekly slate, with the global PMIs due out on Tuesday, the ECB meeting on Thursday, US Q2 GDP on Friday and corporate earnings releases peaking.