Stocks and Dollar Rally as Trump Tariffs Face Court Hurdle

Stocks and the dollar rallied after a US court blocked Trump's tariffs, while the London copper price edged higher. The RBI is expected to cut interest rates by 25 basis points on June 6, followed by another cut in August. The Malaysian ringgit and S.Korean won led declines among Asian currencies. Mitsubishi Heavy Industries updated its notice of the 100th Annual General Meeting of Shareholders.

Stocks and the dollar rallied following a U.S. court's decision to block President Trump's tariffs, providing a boost to global markets. The London copper price also edged higher, reflecting positive sentiment in the commodities sector. Meanwhile, the Reserve Bank of India (RBI) is expected to cut interest rates by 25 basis points on June 6, with another cut anticipated in August, offering potential relief to homebuyers and the broader economy [2].

In the Asian currency markets, the Malaysian ringgit and South Korean won led declines, reflecting concerns over trade tensions and economic outlook. The Japanese yen, however, remained relatively stable, supported by safe-haven demand. Additionally, Mitsubishi Heavy Industries (MHI) updated its notice for the 100th Annual General Meeting of Shareholders, signaling the company's ongoing focus on strategic initiatives and shareholder communication [3].

The U.S. court's decision to block Trump's tariffs has temporarily eased trade tensions, allowing investors to focus on other economic indicators. However, the markets remain vigilant, with the spotlight on upcoming trade news, PCE inflation data, and Fed minutes. Rising bond yields continue to pose a challenge to stock market investors, with analysts closely monitoring these levels [4].

As the U.S. economy navigates potential headwinds, investors are keeping a close eye on the political landscape, including the tariff battle, tax bill, and debt ceiling negotiations. The upcoming MPC meeting and the subsequent rate cuts are likely to shape the economic outlook for India, providing a boost to consumer spending and business investments.

References:
[1] https://www.tradingview.com/news/DJN_DN20250526003098:0-dow-jones-top-markets-headlines-at-1-pm-et-european-markets-rebound-after-trump-delays-tariffs-canada/
[2] https://www.republicworld.com/business/good-news-for-homebuyers-rbi-likely-to-cut-repo-rate-by-025-on-june-6
[3] https://www.nikkei.com/markets/company/sys/redirect_dis.aspr?ano=fchm3l&t=https://www.nikkei.com/nkd/disclosure/tdnr/20250528569825/
[4] https://asia.nikkei.com/Business/Aerospace-Defense-Industries/Japan-s-Mitsubishi-Heavy-eyes-trainer-jet-for-possible-export