President Xi warns of Full Scale Trade War

27 June, 2018

Risk on sentiment returned briefly yesterday as markets retraced some of Monday’s selloff but sentiment in Asia has declined overnight. The PBOC cut the onshore reference rate for the Yuan as trade tensions escalate, in an effort to stay ahead of tariffs and a weakening currency due to trade concerns. The PBOC also said they will seek to reduce holdings of US Treasuries. President Xi warned the country to prepare for a full scale trade war. The Chinese are expecting further escalation from the US after earlier announcements this week that the US would limit foreign investment despite some row back from officials. The Shanghai Composite Index fell into bear market territory, which is a fall of 20% from its high with the Chinese A50 Index down -2.28% to 11471.44.

Oil rallied above $70.00 a barrel yesterday as Private Inventories data showed a bigger than expected draw in stocks. Today’s Inventory data will shed further light on the storage situation in the US with an expected draw of -2.481M expected from -5.914M last week. The USD gained as the tension eased yesterday and it is consolidating those gains for now.

US S&P/Case Schiller Home Price Index (YoY) (Apr) was 6.6% against an expected 6.8% from a prior reading of 6.8%. This measure has been holding a steady improvement since the late 2014 low, with today’s data largely in line with expectations. USDJPY fell from 109.686 to 109.553 as a result of this data.

New Zealand Trade Balance (MoM) (May) numbers was released coming in at $294M (MoM) and $-3.60B (YoY) against an expected $100M (MoM) and $-3.74B (YoY) with prior numbers of $-1,193M (MoM) and $-3.76B (YoY) which were $193M (MoM) and $-3.83B (YoY). Imports (May) were $5.12B against an expected $5.10B from $4.79B previously which was revised down to $4.77B. Exports (May) were $5.12B against an expected $5.25B from $5.05B previously which was revised down to $4.96B. This data caused NZDUSD to move up from 0.68497 to 0.68588 before reversing and selling off to 0.68114.

Source link  
Pound rallied, stocks declined

The U.K. main stock index closed lower Thursday, weighed down by weakness for resource stocks and banks and a strong pound as the outline of a key agreement...

Oil slips as U.S. inventories swelled

Oil prices slipped on Thursday after U.S. crude inventories swelled to their highest level since December 2017 amid concerns of an emerging global glut, although...

Crude's Collapse Is Sending Shockwaves

Investors have gone from contemplating the prospect of oil at $100 to sub-$50 in less than two months. No wonder global markets are playing catch-up....

Dollar growth pushed down stock indices

Monday was a hard day for the financial markets. American DJI lost more than 2.3% and S&P500 decreased by 2.0%. As in previous weeks, the main pressure...

U.S. stocks recover after elections

Preliminary estimates of the U.S. election results support a positive mood on the world markets, reducing the demand for protective assets and causing...

Cautious mood has returned to stocks

American markets ended trading on Wednesday with a slight increase. Asian bourses also experienced growth at the opening, but it was quickly...

Emerging markets rebound seems over

Asian markets have turned to a decline with a renewed force. After the rebound of last week, the index MSCI Asia ex Japan loses 1.2% and is only...

Rebound in Asian markets intensifies

On Friday morning, the demand for risks on the Asian bourses continues to recover. MSCI for Asia ex Japan is adding more than 1.2% this morning, having...

Reasons to rebound EM indices

Asian markets are adding after reaching 14-month lows the day before. Positive markets are supported by the reports about China's invitation to trade...

In the past 24 hours Bitcoin has gained 1.65% and reached $3557.52288295. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.4129% and is now at $1.1327. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -18.52% and is now at $92.6234683295. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Daily Forex Market Reviews

Forex Currencies Forecasts

Top 10 Forex Brokers 2018

# Broker Review
6FIBO GroupFIBO Group84%