Markets in Asia were mostly higher today as investors looked to a much-anticipated U.S. Federal Reserve meeting. EU bourses started the day mixed as investors await a speech from ECB President Mario Draghi. Yesterday, the German Dax dipped after Lufthansa issued a strong earnings warning.
US stock markets are also seen recording potential sideways pattern ahead of the Fed meeting later today. Overall, the Fed meeting is expected to be the most decisive event when it comes to the next big market move. Meanwhile, it is not getting much better on the data front. Yesterday in the US, the Empire State manufacturing index posted largest-ever drop into negative territory.
China Confronts the US
Chinese President Xi demonstrated his close ties to North Korea with a visit right before the G20 meeting probably signalling to Donald Trump, that if he wants any progress with North Korea then he needs to go through China. Hu Xijin of the Global Times in China reports a tsunami of criticism against the US in the Chinese state media, priming the Chinese People for hard times and a trade war vs. the US.
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The Aussie fell to fresh 5.5-month lows, breaking support to the downside, after the minutes of the Reserve Bank of Australia's June rate decision showed consensus among policymakers that further monetary easing would be appropriate. Elsewhere, the sterling wallowed near this year's lows on rising worries that Boris Johnson could put Britain on a path towards a dreaded no-deal Brexit. The USD traded slightly subdued ahead of tomorrow's Fed meeting with other currencies edging higher on a weaker dollar. Specifically, the EUR/USD has seen some moderate gains with a chance of heading back lower if the 2020 Italy budget matter becomes a problem again.
Oil Prices Move Slightly Lower
Oil prices noted slight losses of about -0.5% this morning, after more signs that global economic growth is being hit by U.S.-China trade tensions. Meanwhile the US/Iran conflict widened after the US announced that it would send troops to the region.
Gold and Bitcoin Enjoy Fresh Safe Haven Demand
Global concerns and a weaker dollar boosted safe-haven assets with gold prices retesting 2019 highs and edging higher to now aim for the $1350 mark. Elsewhere, bitcoin reclaimed the 9k level and could be on its way to test the 10k level with heightened institutional interest and CME Futures trading volumes. Bitcoin prices have climbed more than 200% over the last several months, rising sharply amid strong demand and bullish momentum.
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