Global Shares Higher in Anticipation of US Q2 GDP Report
Global stocks were mostly higher today, as strong company earnings reports and an easing of transatlantic trade tensions on an agreement between the US and Europe this week to try to cut trade barriers boosted investor confidence. European stocks were higher today, helped by easing fears over US tariffs and positive company earnings. US stock futures are also pointing to higher open.
Investors will keep an eye on a preliminary reading of second-quarter US growth data for further clues on when and how fast the Federal Reserve will raise interest rates. The report is expected to show the economy expanded at an annual rate of 4.1% in the April-June period, more than double the first quarter's output. That would be the highest since the third quarter of 2014. US President Donald Trump expects second quarter GDP to rise to as much as 4.8%.
Stronger-than-expected economic growth would support the Fed’s plans to continue with gradual rate hikes. Fed fund futures currently price in a quarter-point hike for September, with the probability for a second increase in December hovering just above 70%.