Everything you need to know to start your trading day

Yesterday, the US Federal Reserve cut interest rates by 25 points, which was expected. The motive was global uncertainty and suppressed inflation. But Jerome Powell overshadowed hopes of further interest rate cuts later this year. He said this was not the beginning of a new series of interest rate cuts.

He did not give a clear signal that a new cycle of policy easing was beginning, and the purpose of this cut was purely to ensure the growth of the US economy. In order to withstand the oncoming global winds and risks. However, Powell said unequivocally that this would not be the only downgrade.

This implies that the next move of the Fed will depend on developments in world events and economic data and their effect on the US economy. At this stage, the manufacturing sector remains weak in the context of global slowdown, but the larger services sector is holding steady.

And mentioning production data, Chinese PMI data again showed shrinkage. Production activity in July again shows contraction. The production Caixin PMI came out 49.9, slightly better than the expected 49.6. However, the figures are still below 50. The Chinese economy shrinks for the third consecutive month. The current trade war is only part of the history of the weakening Chinese economy. There are local, domestic factors and problems in China. The state is not on the verge of collapse, but the economy is definitely losing its "buzz".

Negotiations between China and the US ended yesterday and this week, and they will resume in September. Both sides have conducted an effective, constructive and in-depth conversation on many of the key topics.

Boris Johnson was in Ireland, but achieved very little in the negotiations with Dublin and Brussels on the border with Ireland, the so-called. backstop. The new Prime Minister met with major parties in Belfast in his last round of the national tour. He reiterated his intention of leaving the UK on 31 October, with or without a deal. His intentions do not include the construction of infrastructure at the Irish border.

Today we expect the reports of General Motors, Kraft Heinz, Verizon Communications and Square.

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