Global stocks haunted by trade stress, dollar still slipping


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Global stocks haunted by trade stress, dollar still slipping

On Tuesday, the 25th of June 2019, a basket of Asian stock indices appeared to be haunted by the stresses of trade anxiety, while more dovish speeches from some Fed policymakers had been dragging down the American dollar alongside Treasury Yield, pushing the safe-haven precious, spot gold futures prices to a fresh six-year peak to $1434.97 an ounce.

As a matter of fact, investors across the world had been eyeing the outcomes of Trump-Xi talk over the sidelines of a G20 summit and the talks are expected to take place on next Saturday (June 29th), meanwhile the global market would likely to test the nerves of the traders.

Besides, a latest comment from a senior US official that Trump would not be discontent with any outcome, had not been helping the market sentiment at all. Investors over the mainland China did not seem to be hopeful as well, as Shanghai posted a loss of 1.8 percent, which prompted the downing of MSCI’s broadest index of Asia-Pacific shares outside Japan to 0.5 percent lower, while Japan’s Nikkei shed 0.6 percent and E-Mini futures for the S&P 500 were down by 0.3 percent.

Meanwhile, European stocks had opened the broadly lower with regional Pan-European STOXX 600 shrugging off 0.2 percent of its earlier gains. Apart from that, American traders had set off the week yesterday (June 24th) just as cautious as the Asian traders, while Dow was slightly up by 0.03 percent, S&P shed 0.17 percent and Nasdaq lost 0.32 percent at Monday’s (June 24th) Wall St.

closure. Expressing optimism over an imminent rate cut which should be able to propel financial markets forward despite growing uncertainties over a Trump-Xi meeting later this month, a senior US economist at NatWest Markets, Kevin Cummins said, “It’s always possible the chair could walk back some of the market’s dovish interpretation of last week’s FOMC meeting...but we suspect he will reinforce the message laid out last week.

By the end of July, we believe the Fed will have seen enough to decide that action to counter downside economic risks and low inflation/inflation expectations is warranted, and so we look for a 25 basis point rate cut at the next FOMC meeting”.