By Deepta Bolaky
From Huawei to Hikvision, the world’s largest maker of video surveillance, investors are finding little respite from trade tensions. Media reported that the Trump administration considers blacklisting another major Chinese technology firm reignited fears in the financial markets.
Wall Street ended in the red- The Dow Jones Average Industrial, S&P 500 lost 0.39% and 0.28% respectively while the Nasdaq Composite erased 0.45%.
World Equity Indices (% Change)
In the currency markets, the US dollar ended mixed against major rival currencies and strengthened slightly after the FOMC minutes. The minutes did not show that a rate cut is on the cards for the moment.
Source: Bloomberg Terminal
The British Pound emerged as the worst performer among the G-10 peers against the US dollar. The news flow for Brexit was bearish as there were talks that the Prime Minister would resign and that senior MPs were frustrated over the PM’s plan of actions. However, it appears that Theresa May managed to buy herself another 36 hours.
On the economic calendar, inflation figures came below expectations. The GBPUSD pair is swinging in a tight range and is currently trading around the 1.26 level.
GBPUSD (Daily Chart)
Source: GO MT4
The Antipodeans are back to trading on the downside. The Federal election brought temporary relief to the Aussie dollar. However, the RBA Governor Lowe’s comments sent the local currency on the offer.
Oil reports received so far this week are on the bearish side, adding pressure on oil prices. The EIA reports show a build-up in crude oil inventories by 4.7 million barrels compared to the previous week.
WTI dropped to $61 while the Brent Crude is trading in the vicinity of $70.
UKOUSD and USOUSD (Hourly Chart)
Source: GO MT4
Foreign Investment in Stocks (Japan)
GDP, Markit Manufacturing, Services and Composite PMI (Germany)
Jobless Claims, Markit Manufacturing, Services and Composite PMI & New Home Sales (US)
|Friday, 24 May 2019
Indicative Index Dividends
Dividends are in Points
Disclaimer: Articles and videos from GO Markets analysts are based on their independent analysis. Views expressed are of their own and of a ‘general’ nature. Advice (if any) are not based on the reader’s personal objectives, financial situation or needs. Readers should, therefore, consider how appropriate the advice (if any) is to their objectives, financial situation and needs, before acting on the advice.