Investors Are Focused on the US-China Trade Relations

On Friday, the US dollar declined slightly against a basket of major currencies in expectation of a meeting between the US President and the Chinese President at a summit in Japan. The US dollar index (#DX) closed in the negative zone (-0.08%). On Saturday, there was a meeting between Donald Trump and Xi Jinping, which they thought was pretty good. The US President made concessions to China and refused to further duties increase in order to reduce tensions with Beijing. China, in turn, agreed to make new purchases of US agricultural products and return to the negotiating table. We recommend following current information regarding the US-China trade relations.

On Friday, data on the GDP of the UK and Canada were also published. Thus, the UK GDP (q/q) grew by 0.5%, as experts expected. The UK GDP (y/y) grew by 1.8%, which matched the forecasts. Canada GDP (m/m) increased by 0.3%, which turned out to be better than the forecasted growth by 0.1%. This week, economic reports from the United States will be in the focus of attention.

Today, during the Asian trading session, ambiguous data from Japan have been published. Thus, Tankan large manufacturers index (Q2) counted to 7 and was worse than the forecasted value of 9. Meanwhile, Tankan large non-manufacturers index (Q2) counted to 23 instead of the expected value of 20. Also, Chinese Caixin manufacturing PMI was published, which counted to 49.4 and was worse than the expected value of 50.0.

The "black gold" prices have increased by more than 2% in expectation of the OPEC+ deal extension. At the moment, futures for the WTI crude oil are testing the mark of $60.00 per barrel.

Market Indicators

On Friday, the bullish sentiment was observed in the US stock market: #SPY (+0.51%), #DIA (+0.26%), #QQQ (+0.13%).

The 10-year US government bonds yield has been growing. Currently, the indicator is at the level of 2.01-2.02%.

- German manufacturing PMI at 10:55 (GMT+3:00);
- Report on the labor market in Germany at 10:55 (GMT+3:00);
- The index of economic activity in the UK manufacturing sector at 11:30 (GMT+3:00);
- ISM manufacturing PMI at 17:00 (GMT+3:00).

by JustMarkets, 2019.07.01

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.