Tariff battles heat up
The FTSE and European markets are surprisingly positive this morning despite the start of the increased tariff regime on Chinese imports into the US Friday and even though the ongoing trade talks due to continue in Washington on Friday have not yet reached a conclusion.
Share this:
The FTSE and European markets are surprisingly positive this morning despite the start of the increased tariff regime on Chinese imports into the US Friday and even though the ongoing trade talks due to continue in Washington on Friday have not yet reached a conclusion.
The tariff battle front could expand to include Europe and Japan from next week when President Trump is due to decide on whether or not to increase the tax on European and Japanese car imports.
The DAX will be particularly sensitive to the US news given that German car and car part makers are a significant component of the index.
So far the FTSE has managed to avoid the trade-induced malaise mainly thanks to results from British Airways parent firm IAG which rallied 3.58% in early trade. Most of the Asian markets slipped overnight while US stock futures are in the red this morning.
Euro higher as German manufacturing surprises
The euro is notching higher against the pound and is more or less holding flat against the dollar after German manufacturing surprised on the upside with a slight expansion in March. This will be good news for the ECB particularly after the European Commission reduced the growth forecast for the German economy this year to only 0.5%.
The pound is sliding into negative territory against the euro and the dollar despite a surprise pick up in the UK’s first quarter GDP caused by a flurry of orders being delivered ahead of the planned Brexit March deadline.
Related tags:
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Oil Shock Hits Bond Yields and Squeezes the Consumer
U.S. 10-year and 30-year bond yields have moved higher as markets reopen after the Labor Day weekend, with the producer price index and the consumer price index landing within days of each other. The European Central Bank decision sits between them, where the economic projections and Christine Lagarde's press conference carry more market risk than the rate move itself. The DAX has also broken below its 21-day exponential moving average, a sign that momentum beneath a resilient index is starting to fade.
DAX, Crude oil forecast: Rising energy prices, yields threaten risk assets
Following a weak handover from Asia, European markets and US indices were under pressure this morning, as rising oil prices and elevated bond yields once again weighed on risk appetite. Among the major European indices, the German DAX will be in firm focus this week, with the ECB’s rate decision coming up on Thursday. That decision is likely to be a hike, as rising oil prices threaten to re-accelerate inflation.
Nikkei 225 Eyes Wall Street Bounce Ahead of NFP
Wall Street rebounds as Fed hike bets ease, while Nikkei 225 futures eye 66k resistance ahead of US nonfarm payrolls.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.