Markets in Details: 03 July 2019

3 July, 2019

Markets pause after a record run


Markets in Europe and the U.S. were flat on Tuesday after the record run of major U.S. indices fueled by the trade truce between the U.S. and China announced at the G20 meeting.

While state media in China did not paint a rosy picture of the truce, a view shared by Huawei’s founder Ren Zhengfei, the news that the trade talks were to be resumed was enough to lift stocks and bring back the risk appetite of investors who had been aside due to uncertainty.

Visible risks remain


Today, the UK PMI data pointed to a sharp downturn in construction activity due to Brexit concerns. The British 10-year bond yield slipped to its lowest level since 2016 on the news.

Mark Carney, the Bank of England governor, has delivered a downbeat assessment of the development earlier today stating that Brexit caused a slump in business investment and the UK is reliant on consumer spending in the first half. He also warned that investors should not expect the bank to cut interest rates in case of an “orderly” Brexit as housing could rally and business investments could stage a rebound prompting it to be vigilant of inflationary pressures.

The Trump administration went on the offensive by proposing new $4bn  tariffs on EU goods due to a long-standing dispute over aircraft subsidies. The USTR office also targets at cheese, coffee, pasta and olive goods. Observers fear that new trade disputes will continue to dampen global growth and soften consumer demand. WTI crude moved down to $57 after almost reaching $60 in the last two sessions.


Source link  
Markets in Details: 12 November 2019

A worsened situation with the U.S./China talks has brought back worries about demand for oil in case the trade war continues. WTI dropped...

Market sentiment dampened on trade deal fears

Despite the strength that markets had been showing earlier this week on the optimism about the trade deal between U.S. and China, fears...

Markets in Details: 07 November 2019

Euro area's Composite PMI recorded 50.6 in October, which suggests a flat scenario. Germany's lack of growth continues to affect the euro area...


Risk of crypto credit blowup

The rapid expansion of crypto credit is showing all the classic signs of a pending blow-up: undeveloped lending management, increased risks...

Markets in Details: 08 October 2019

The gloom of uncertainty in financial markets is getting worse this week. This morning the latest Brexit news caused the pound to slide...

Markets in Details: 02 October 2019

Trade outlook for the global economy is constantly affected by weakening exports and declining sentiment mainly caused by a discord...


Markets in Details: 26 September 2019

While major indices in the U.S. are in the black on Wednesday, the broad market is under pressure due to the impeachment news that speaker...

Markets in Details: 24 September 2019

UK officially entered a political crisis after its Supreme Court handed a legal defeat to Boris Johnson's government by ruling that the suspension...

Markets in Details: 20 September 2019

After both the ECB President and EU President said the likelihood of a hard Brexit is increasing, the OECD has released its assessment that estimates...

  


Share it on:   or