Morning Bid: Results first, worries later

By Mike Dolan

Jan 27 -

What matters successful U.S. and planetary markets today

By Mike Dolan, Editor-At-Large, Finance and Markets

Markets pushed higher connected Tuesday contempt a caller tariff menace from U.S. President Donald Trump, this clip against South Korea. Investors look much focussed connected the red-hot tech assemblage and AI roar arsenic they await a slew of mega-cap ​earnings this week.

But lingering caution besides reared its caput arsenic golden and metallic held steadfast connected continued planetary uncertainty, and the dollar remained nether unit amid continued concerns astir coordinated ‌intervention to boost the yen.

I’ll get into each that and much below.

But first, cheque retired my latest file connected wherefore globalization whitethorn good forge up without the U.S.

And perceive to the latest occurrence of the Morning Bid regular podcast. Subscribe to perceive ‌Reuters journalists sermon the biggest quality successful markets and concern 7 days a week.

RESULTS FIRST, WORRIES LATER

Bourses astir the satellite appeared to motion disconnected a caller tariff menace from U.S. President Donald Trump connected Tuesday arsenic shares deed caller grounds highs, with mega-caps Microsoft, Meta, and Tesla owed to study connected Wednesday.

The S&P 500 ended 0.5% higher connected Monday and futures were higher up of Tuesday's open, portion the Nikkei and adjacent South Korea's KOSPI besides rose.

The South Korean exchange’s emergence – which took it to a caller precocious – came arsenic the state recovered itself the latest people of Trump’s hammer-and-nail commercialized policy. Trump announced connected Monday that helium would ⁠hike tariffs connected imported South Korean goods to 25% from 15%. He ‌blamed the determination connected the South Korean parliament’s evident nonaccomplishment to rapidly instrumentality a pact agreed past twelvemonth with President Lee Jae Myung to boost concern successful U.S. concern projects.

While equity investors’ attraction was focused elsewhere, the imaginable for yet much commercialized disruption helped support golden and metallic elevated connected Tuesday morning, portion the greenback ‍remained nether unit aft a torrid Monday which saw the dollar index’s biggest three-day descent since past April.

The dollar scale slipped further aft edging higher concisely connected Tuesday, portion Japan's yen held its champion levels of the twelvemonth connected continued speculation astir associated U.S.-Japan enactment to prop it up up of adjacent month's Japanese drawback election.

Investors are besides awaiting the Fed’s adjacent argumentation determination connected Wednesday. While rates are expected to beryllium held steady, further dollar volatility ​could prevarication up depending connected however the cardinal slope responds to threats to its independency and however Trump – who has agelong called for faster cuts – reacts.