Trump-Xi meeting jitters move markets
Fiona Cincotta June 27, 2019 10:14 AM
US media is quoting Washington sources saying that the two presidents will negotiate a six months truce in order to avoid the damaging impact of the trade dispute on both economies. However, in an interview on US television Trump said that if the trade deal doesn’t come to fruition he would collect billions of dollars in tariffs from China and simply do less business with the country.
In London Kingfisher is leading the gainers after it appointed an experienced Carrefour executive as its new CEO while property companies are providing a counterweight to the rally.
Dollar rallies on deal expectations
The dollar rallied against the yen on the assumption that the two sides would reach some sort of agreement this Saturday in Japan but the currency traded flat against the euro and the Canadian dollar. The focus now is shifting onto US jobless data and GDP numbers due later this morning which will provide an insight into whether the Fed will be able to keep rates flat at its next meeting, as some members suggested earlier this week.
The pound was barely showing any signs of life, trading almost unchanged against the euro and the dollar, cautious as Boris Johnson keeps reiterating his Brexit at any cost approach.
Profit taking pushes Brent crude lower
Investors took some profits off the table, cashing in after the swift rise in Brent crude prices over the last few days which saw oil rise by 2% on Wednesday, having already made gains Monday and Tuesday.
This morning Brent is trading down 0.87% but is still comfortably above $65, the highest level in almost a month, supported by ongoing tensions in the Middle East and expectations that OPEC will extend its production cuts when it meets in Vienna next week.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.