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

Planet Daily News: After negotiations in Geneva, China and the United States agreed to reduce tariffs and give each other time to resolve differences. This progress marks an important milestone between the two economic giants. Large tech stocks, which were previously hit hard during the sell-off, are expected to rise significantly at the opening, while safe-haven assets decline, with gold, the Japanese yen, and Swiss franc all falling simultaneously. Traders are also reducing their bets on the extent of central bank rate cuts this year. Swap contracts linked to the Federal Reserve meeting now tend to suggest a 25 basis point rate cut in September. Last week, these contracts had implied a potential policy change as early as July. (Jinshi)