Market Recap - China are threatened with new tariffs
Once again this morning we wake up to a new headline threatening China with new tariffs. This time it comes off the back of US indices performing well after Fed Chair Powell stated he believes rates are close to the neutral rate. All three main US bourses closed above 2.50% to the good. Over in the Asia Pac area, the Nikkei (0.34%) and ASX (0.58%) continued the bullish sentiment, while the Shanghai Comp. fell 1.32%.
Commodities markets benefitted off the back of the weaker USD. Gold moved up to trade at a high of $1227/oz and this morning we are 0..38% higher.
Copper also responded and moved around 2.80% higher yesterday, but as the negative trade headlines have come out this morning it has failed to build on that momentum and trades closed to yesterday's closing price at $2.78/lb.
WTI has a much softer session as another build was recorded in DoE's. As we head into the OPEC meeting we may hear some more comments about a production cut so keep close attention to any energy news.
On the data slate today we have comments from ECB's Draghi, German employment data, German CPI, US PCE, US pending home sales, FOMC minutes and Japanese industrial production.