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Oil jumps as OPEC signals intention to maintain cuts

Markets Mixed As Google Suspends Business with Huawei

Asian markets put in a mixed performance overnight as investors paused, waiting for new developments in the US – China trade dispute. This comes after a week of escalating tensions between the two powers. The latest headlines over the weekend indicate that Trump could be softening his stance slightly after he removed tariffs on Canadian steel and aluminium. However, US top tech companies starting to cut off vital Huawei supplies as they comply with the Trump administrations crackdown risks stoking tensions between the US and China further.

Another volatile week ahead?

Market volatility continues to stem from announcements and interpretations of what is going on in trade disputes between the US and its trading partners, but principally China. Whilst the latest headlines over Canada are supportive of sentiment, a news bite which increases risk aversion could be just around the corner. Investors know this and are on edge right now. That won’t change overnight. China are unlikely to take Google’s suspension of business with Huawei lying down.

A slew of US data across the week and the minutes from the Fed’s latest policy meeting will provide clues as to the robustness of the US economy. It is too soon to see any impact of the escalation of the trade war on data, which explains why investors are reacting so strongly to headlines. Strong data and risk-hitting headlines could ensure a volatile week for stocks and the dollar alike.

Australian stocks outperformed and the Aussie dollar popped higher after the centre-right Liberal National Party pulled off a shock election win in federal elections, beating the Australian Labour party. The results underpinned a firmer session across most of Asia, although stocks in China and Hong Kong fell.

Oil jumps 1.3%

Oil is rallying strongly in early trade on Monday after OPEC signalled its intentions to maintain production cuts for the rest for the year. Oil has already rallied around 40% since the start of the year, thanks mainly to OPEC limiting supply. Investors had been growing nervous that OPEC could look to remove the production limits at its next meeting in June, in light of tightening global supply and elevated prices. Whilst the OPEC production cuts have offered significant support to oil prices, US sanctions on Iran and Venezuela have also played a role. Add into the equation rising middle eastern tensions, as Iran retaliates to US measures and oil looks well supported at these levels.

25-6-2019

Iran tensions boost risk-off trades
Nothing much happened on Monday, except from the US imposing further sanctions on Iran, including the country’s supreme leader Ayatollah in what is seen as a ‘symbolic’ and even a ‘provocative’ action.So, in one hand, we have the developing Iran story that mov… Read more

24-6-2019

Oil gains, stocks mixed on Iran tensions
The week begins with a limited risk appetite, as tensions between the US and Iran escalate. The US prepares to impose more tensions on Iran today.Oil extended gains in Asia; Brent crude trades near $65 a barrel, as WTI is preparing to test the 100-day moving a… Read more

21-6-2019

GBP rebounds, S&P500 hits all-time high
The S&P500 advanced to a fresh all-time high on Thursday, as the dovish Federal Reserve expectations fueled the equity purchases around the globe this week. Slack made a solid debut in New York Stock Exchange. The price surged to $42 per share, well above … Read more

20-6-2019

BoJ, BoE to stay pat, Slack goes public
Equities extended rally as the Federal Reserve (Fed) delivered a sufficiently dovish accompanying statement not only to meet the market’s expectation, but also to surprise to some extent. The Fed maintained its benchmark rate unchanged at 2.25%-2.50%, kept its… Read more

19-6-2019

Stocks rally on dovish ECB, Fed in focus
The European Central Bank (ECB) President Mario Draghi’s speech was a godsend for the European bond and stock markets on Tuesday. The Eurostoxx 50 and the Dax closed the session 2% stronger, the CAC rose 2.20%, as the euro got shattered across the board.The EU… Read more

18-6-2019

Markets calm pre-Fed, EUR CPI in focus
Investors in equity and foreign exchange markets are reluctant to take a direction before this week’s much expected Federal Reserve (Fed) decision. The S&P500 (+0.09%) and the Dow (+0.09%) closed flat on Monday. NASDAQ gained 0.62%, as technology stocks ra… Read more

18-6-2019

Facebook cryptocurrency Libra validates bitcoin
Libra will expose 2 billion Facebook users to crypto Stablecoins like Libra don’t compete with Bitcoin Bitcoin back in a bull market Today Facebook is set to release a whitepaper about its new cryptocurrency dubbed Libra. Libra could mark the beginning … Read more

17-6-2019

Stocks better bid; Fed and BoE in focus
The trading week started with a mixed risk appetite in Asia. The Hang Seng index gained up to 1.25% after Hong Kong’s chief executive Carrie Lam delayed the fiercely disputed extradition law on Saturday. Still, millions gathered in Hong Kong on Sunday asking f… Read more