Mixed session in equities overnight - US bans Chinese telecoms companies

Published date: 16/05/2019

It was another good session in US equity markets yesterday as the sentiment shift continued for another day. Over in the Asia Pac area, things were slightly rocky after US President Trump signed an order to restrict the usage of Huawei and ZTE in the United States. The Nikkei 225 fell 0.63%, ASX rose 0.69% after some good data and the Shanghai Comp. finished the session 0.34% higher. Overnight we also had the Australian employment change data which beat expectations of 15.2k to print at 28.4k, despite this AUD/USD was still weaker on the session. 

Despite another build in inventory levels oil traded higher overnight. This is due to the escalation of tensions in the Gulf as Saudi vessels had been targeted by drone attacks. The price has moved up to $62.35/bbl, 0.42% higher.

Gold has stuttered as the risk sentiment is now very much confused. Trump yesterday announced a delay on the tariff on EU auto imports sending the stock markets higher. This morning the precious metal is trading at $1296/oz, 0.05% higher. 

Copper has stalled at the $2.74/lb resistance level mentioned yesterday. Traders are now getting concerned about stockpiles and the rising tensions between China and the US. 

Today we are looking out for US building permits, Philly Fed data and comments from ECB's Praet, ECB's Wiedmann, ECB's de Guindos, BoC's Poloz, Fed's Kashkari, Fed's Brainard, BoE's Haskel and ECB's Coeure. 


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