Published: Tue, January 08, 2019
Medicine | By Debra Reynolds

Kudlow says Trump meeting with Powell desired by 'both sides'

Kudlow says Trump meeting with Powell desired by 'both sides'

"However, this idea that has been percolating in the market that round the corner, the United States maybe looking at recession risk, that makes no sense because monetary policy all around the world are still more accommodative and the USA economy is growing faster than it long run trend and the Fed policy is still accommodative, the real Fed funds rate is barely above zero", Glassman said in an interview with CNBC-TV18.

Hopes for progress in the U.S. AMD (AMD), which led all S&P 500 stocks in 2018, was up another 11%.

Stocks sank Thursday after Apple said iPhone sales in China are falling, partly because of the trade fight, and a survey suggested USA factories grew at a weaker pace.

But the report could show signs of where things are headed for 2019 in America amid continued trade uncertainty and as tax cut effects wear off.

Donald Trump's top economic adviser said "both sides" want the president and Federal Reserve Chairman Jerome Powell to meet over their differences on the central bank's interest-rate increases.

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Trump, who picked Powell to head the Fed starting last February, has been intensely and publicly critical of Powell's Fed and Powell personally, accusing him of hurting the economy by raising rates.

Oil rose almost 2 percent on Friday after proposed trade talks between the United States and China eased some fears about a global economic slowdown, but gains were capped after the United States reported a sharp build in refined product inventories. Many large-cap tech stocks rose even further, with Amazon gaining 5%, Microsoft rising 4.7%, Alphabet advancing 5.1% and Netflix surging 9.7%.

Speaking after months of volatility in world bond and stock markets, Powell avoided some of the communication missteps that in the past have roiled rather than calmed investors.

Stocks have whipsawed between huge gains and losses for the last few weeks after their big December plunge. On Friday, his softer tone eased investor concerns about further tightening, noting that the Fed will be flexible with all of its monetary policy tools, including the important balance sheet.

The benchmark 10-year government yield was last at 2.65 percent, up 10 basis points from Thursday's close.

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MSCI's gauge of stocks across the globe gained 2.62 percent. That helps banks, as higher interest rates allow them to make bigger profits on mortgages and other loans.

In Asia, Hong Kong's Hang Seng jumped 2.2 per cent.

USA crude oil added 1.8 per cent to $47.96 a barrel in NY. The British pound slipped to $1.2628 from $1.2630. Strong resistance can be seen at 108.45 (50% retracement level), an upside break can trigger rise towards 109.94 (Oct 3rd high).On the downside, immediate support is seen at 108.00 (Psychological level), a break below could take the pair towards 107.44 (23.6% retracement).

US crude oil surged 3.3 per cent to $48.63 a barrel in NY. Natural gas rose 3.4 per cent to $3.04 per 1,000 cubic feet. Copper rose 3.1 per cent to $2.65 a pound.

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