Markets advance despite rising US-China tensions

Dmitry Lukashov IFC Markets

Top daily news

Global equities advance continues today after China’s Foreign Minister Wang Yi’s warning Sunday that some US officials are pushing relations “to the brink of so-called ‘new Cold War’ “, endangering global peace. Investors’ risk appetite was buoyed by President Trump’s announcement he is “not going to close the country” to prevent the spread of a potential second wave of COVID-19.

Forex news

Currency Pair	Change
EUR USD	-0.07%
GBP USD	-0.63%
USD JPY	+0.01%

Dollar strengthening continues today . The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, gained 0.3% Friday. GBP/USD and EUR/USD continued falling Friday and are lower currently as German statistics office Destatis confirmed the German economy contracted 2.2% in the first quarter compared with the previous quarter. Data showed Friday UK retail sales fell by a record 18%. USD/JPY joined AUD/USD’s continued sliding on Friday, but has reversed higher currently after news the government was considering a fresh stimulus package worth over $929 billion. Australian dollar’s slide against the dollar is intact.

Stock Market news

Indices	Change
Dow Jones Index	+0.32%
Nikkei Index	+1.85%
Hang Seng Index	-1.16%
Australian Stock Index	+0.83%

US equity markets are closed today for Memorial Day. Stock indexes in US ended essentially unchanged on Friday while recording solid weekly gains: the three main US stock indexes recorded daily returns ranging from -0.03% to +0.4%. European stock indexes are extending gains currently with British markets shut for public holiday. Asian indexes are mostly rising today led by Australia’s All Ordinaries ASX 200 Index, which jumped 2.2%. Chinese stocks are mixed with Hong Kong’s Hang Seng index down after the US Commerce Department on Friday added 33 Chinese companies and other institutions to a blacklist for human rights violations.

Commodity Market news

Commodities	Change
Brent Crude Oil	-1.41%
WTI Crude	+0.21%

Brent is extending losses today. Oil prices ended lower last session as China’s top economic official said at National People’s Congress on Friday that the country won’t set a growth target for 2020, vowing to spend more to repair economic damage from the coronavirus outbreak. Prices fell despite Baker Hughes report on Friday that the number of active US rigs drilling for oil dropped by 21 to 237 last week, the tenth consecutive drop in a row. The US oil benchmark West Texas Intermediate (WTI) futures ended lower Friday: July WTI fell 2% but is rising currently. July Brent crude closed 2.6% lower at $35.13 a barrel on Friday, booking a 8.1% gain for the week.

Gold Market News

Metals	Change
Gold	-0.38%

Gold prices are retracing lower today. June gold added 0.7% to $1735.50 an ounce on Friday.

Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.

Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

XRP struggles around $1.40 despite institutional inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.