Markets rise on US rate cut optimism; Tesla shares jump 10% after better-than-expected car sales – business live | Business

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

Yesterday’s comments from US Federal Reserve chair Jerome Powell have spread optimism over interest rate cuts across markets. Japan’s Nikkei, Hong Kong’s Hang Seng and the Singapore and Taiwanese markets all rose more than 1%.

On Wall Street, the S&P 500 and the Nasdaq both closed at record highs.

Speaking at a European Central Bank forum in Sintra, Portgual, Powell noted the latest inflation readings from April and May “do suggest that we are getting back on a disinflationary path.”

However, he added: “We want to be more confident” before we decide on reducing policy. “We just want to understand that the levels that we’re seeing are a true reading on what is actually happening with underlying inflation.”

Minutes from the Fed’s June meeting are due later today and could offer clues on the central bank’s thinking on rates.

Shares in Tesla jumped 10.2% after the US electric carmaker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter. It said price cuts and incentives helped stimulate demand.

The Agenda

• 9am BST: Eurozone HCOB Services and Composite PMIs final for June

• 9.30am BST: UK S&P Global Services and Composite PMIs final for June

• 11.30am BST: ECB policymaker Philip Lane speaks at forum in Sintra

• 1.30pm BST: US Trade for May, initial jobless claims

• 2.45pm BST: US S&P Global Composite PMI final for June

• 3pm BST: US ISM Services PMI for June

• 3.15pm BST: ECB president Christine Lagarde closing remarks at forum

• 7pm BST: US Federal Open Market Committee minutes of last meeting