On Wednesday, American stock index futures headed south because dismal data out of China affected market sentiment, while traders waited for more developments related to the US-China trade conflict…
Asian equities get to 5-week maximum
On Friday, Asian equities rallied to five-week maximums because Fed Chair Jerome Powell told once again that the Fed is going to be patient about lifting interest rates. Another factor was the news that trade negotiations between China and America are gradually progressing, shifting to higher levels.
As the major US bank’s dovish stance kept a lid on the evergreen buck, the Chinese currency managed to ascend to its highest value for over five months and it was on course for its greatest weekly jump since the 2005 revaluation in onshore trade.
Meanwhile, European equities are anticipated to go up, and financial spread-betters expect the British FTSE, Germany’s DAX, and France's CAC to head north by 0.1% - 0.2%.
MSCI's index of Asia-Pacific equities surged by 0.29% demonstrating the highest value since December 6. As for Japan's benchmark Nikkei, it soared by 0.97%. Additionally, Shanghai Composite Index tacked on by 0.56%.
American equities extended its surge because market participants responded to Powell’s mixed remarks, while Macy’s warning suppressed US equities.
Major American stock indexes rapidly regained their losses after Fed Chair told that the major bank’s balance sheet would be significantly smaller.
Meanwhile, Chinese and American statesmen are working on arrangements for higher-level trade negotiations after this week mid-level officials debated American demands that would need substantial change in China to address such issues as forced technology transfers, IP theft as well as other non-tariff barriers.
Fundamental tensions between China and America won’t probably go away and there’s a high probability that any agreement to have levies suspended breaks down when it becomes evident that US leader’s goals can’t be met.
Meanwhile, the common currency strengthened by 0.2% hitting $1.1523. Against the Japanese yen the greenback slipped by about 0.1% being worth 108.28 yen.
On Wednesday, Italian stocks led losses in the European Union right after the country's deputy prime minister told that Rome considers breaking EU fiscal rules, thus masking early revenue powered by optimism around the US-China trade conflict…
On Tuesday, another US-China tariff conflict escalation put pressure on Asian stocks, although remarks from American leader that he expects trade talks to be successful backed market sentiment…
On Monday, gold declined notwithstanding a lower American currency because data underpinned hopes for a Fed interest rate lift…
On Friday, European stock indices fluctuated at the beginning of the trading session…
The Reserve Bank of New Zealand will hold a meeting at 00:00 MT time on August 9.