The World Cup is on, it’s sunny and it’s Friday. Don’t expect a lot of action in equities or in Forex. Still, markets have a lot going on in the background. Yesterday saw a profit warning from Daimler – highlighting the risk of a US-China-EU trade war...
As commercial tensions between US and China continue to strengthen due to additional USD 200 billion tariffs (total stated: USD 450 billion), worries from investors in Asian equities have led the Asian market into turmoil. Indeed, the Shanghai Composite Index fell by -3...
Canada has become the first developed nation to legalize Cannabis! On Tuesday the Canadian Senate passed Bill C-45, the Cannabis Act, which was already approved by the House of Common and so will become law. Canadians will be able to purchase and use cannabis legally as early as September 2018...
(19 JUNE 2018)DAILY MARKET BRIEF 2:Italy’s trade balance drops in April as further uncertainty looms
Under strong uncertainties with regard to recently formed coalition of both the League and the 5 Star movement at that time, Italy’s April trade balance strongly decreased, given at EUR 2’938 million (prior: EUR 4’531 million), due to a strong increase in imports (+0...
On Thursday, the SNB will meet to broadcast their monetary policy strategy. In the light of higher domestic inflation, ECB “normalization” signal and mounting political risk in Europe, this generally sleepy meeting should get additional attention...
Andrew Barnett: LTG GoldRock https://www.ltggoldrock.com/todays-key-market-drivers-18th-june-2018/ "US China trade tensions continue to keep markets on edge." The Aussie Dollar is toast...
The US dollar started the days off to wheel as investors cheered the successful conclusion of the Trump-Kim summit. During the Asian session, the dollar index bounced to 93.89 as the single currency fell as low as 1.1741, USD/JPY rose to 110.49 and USD/CHF hit 0.9884...
On the surface, risk is building, yet underneath, volatility continues to compress. The VIX volatility index at 12.33 is at levels not seen since January. Financial markets are less concerned about geopolitical hype and more focused on fundamentals...
The European Central Bank meeting next Thursday will indicate the end of asset purchases. Council members say that if inflation remains stable, bond buying should be taper. We think that markets are focused on the pure economic data...
Global equities took a hit on the last trading day of the week as investors reallocates their portfolio toward less risky assets. The move was similar in the FX market with the US dollar extending gains against most of its peers, with the exception of the Japanese yen (up 0...
In a surprise move Switzerland consumer price inflation rose higher then forecasts. The move will certain triggers speculation of quicker normalization of extreme policy. Swiss May CPI came in at 0.4% m/m vs. 0.3% m/m exp (1.0% y/y vs. 0.9% y/y) while core CPI climbed 0.1% m/m and 0.4% y/y...
The single currency extended gains on Wednesday with EUR/USD finally breaking the 1.1745 resistance to the upside and EUR/CHF climbing towards 1.16...
After a brief rally supported by speculation of tight supplies, crude oil crashed. WTI experienced its largest single-day fall since 2017, as supply increases hit the wires...
As widely expected, the Reserve bank of Australia left its official cash rate target unchanged at 1.50%. The overall tone of the statement remains positive with Governor Lowe staying positive on both Australian and global economic developments...
While the market focused on Italy, the US released some interesting data yesterday. ADP for May reported a marginally weaker result than expected 178k verse 190k exp. The BEA dropped Q1 real GDP to 2.2% q/q against 2.3% exp from previously reported 2.3% q/q...
Financial markets continued to benefit from easing political tensions in Italy after Luigi Di Maio, leader of the 5-Star Movement, said he was ready to go back on his decision to pick economist Paolo Savona for finance minister. Nevertheless, he will stick to Giuseppe Conte for prime minister...
Global risk aversion triggered by political risk mounting in Italy hit crude oil prices hard. Following Friday massive selloff in crude as mixed message from OPEC seem to suggest production cuts might not last...
The FX market continues to be driven by the Italian and Spanish political developments; however, the risk-off sentiment has eased somewhat as investors take a step back to re-evaluate the situation. EUR/USD is up 0.50% this morning as it climbed back towards 1.16 after having reached 1...
