20-day data suggest that daily ex-ship exports could weaken on a year-on-year basis for the full month of May<\/em><\/figcaption><\/figure>\nStill, the situation remains fluid and just one hastily worded tweet threatens to collapse confidence. \u201cEquity markets remain hostage to developments in the ongoing US-China trade battle,\u201d said Rupert Thompson, head of research at Kingswood. \u201cWe still believe some kind of deal will eventually be reached – most likely at a Xi\/Trump meeting at the G20 Summit in late June.\u201d<\/p>\n
Despite the overnight rebound in optimism, overall sentiment continues to deteriorate: “The world of G-10 believes that things get fixed. This is what economists tell them, and so they do not see a reason to panic,”<\/strong>said\u00a0Sebastien Galy, senior macro strategist at Nordea Investment Funds SA in Luxembourg. “Volatility is set to stay, though it need not mean that equities are always to the downside,” pending clarity on U.S.-China talks before next month\u2019s G-20 summit, he added.<\/p>\nIn FX, cable fell below $1.27 for the first time since mid-January, hit by dollar strength and expectations that Prime Minister Theresa May will fail to persuade cabinet colleagues to back an amended version of her Brexit withdrawal deal. As Reuters notes, the pound slipped 0.2% to $1.2688 while against the euro it was down 0.14% to a new four-month low of 87.88 pence.<\/p>\n
Elsewhere, the U.S. dollar advanced against most of its G-10 peers, with the Australian dollar seeing the biggest declines. The Aussie slid, wiping most of the previous day\u2019s advance, after RBA Governor Philip Lowe said he\u2019ll consider cutting interest rates at next month\u2019s meeting to spur faster hiring, pushing the Aussie dollar lower half a percent to $0.6873. Most other G-10 currencies were range bound ahead of a slew of risk events this week, including minutes of the Federal Reserve\u2019s latest meeting and a potential response from China. In EM, the outlier was the Turkish lira which stayed lower after the country\u2019s central bank effectively lowered its main interest rate, undoing a limited tightening of policy<\/p>\n
Oil prices edged higher on U.S.-Iran tensions and amid expectations that producer club OPEC will continue to withhold supply this year. Brent crude futures, the international benchmark for oil prices, were at $72.18 per barrel up 21 cents, or 0.3 percent, from their last close.<\/p>\n
Expected data include existing home sales. AutoZone, Home Depot, and TJX are among companies reporting earnings.<\/p>\n
Market Snapshot<\/strong><\/p>\n\n- S&P 500 futures up 0.3% to 2,853.00<\/li>\n
- MXAP down 0.3% to 153.91<\/li>\n
- MXAPJ down 0.1% to 503.15<\/li>\n
- Nikkei down 0.1% to 21,272.45<\/li>\n
- Topix down 0.3% to 1,550.30<\/li>\n
- Hang Seng Index down 0.5% to 27,657.24<\/li>\n
- Shanghai Composite up 1.2% to 2,905.97<\/li>\n
- Sensex down 0.6% to 39,127.68<\/li>\n
- Australia S&P\/ASX 200 up 0.4% to 6,500.14<\/li>\n
- Kospi up 0.3% to 2,061.25<\/li>\n
- STOXX Europe 600 up 0.4% to 379.09<\/li>\n
- German 10Y yield unchanged at -0.087%<\/li>\n
- Euro down 0.2% to $1.1144<\/li>\n
- Italian 10Y yield rose 4.0 bps to 2.327%<\/li>\n
- Spanish 10Y yield fell 0.4 bps to 0.88%<\/li>\n
- Brent futures down 0.3% to $71.77\/bbl<\/li>\n
- Gold spot down 0.2% to $1,275.22<\/li>\n
- U.S. Dollar Index up 0.2% to 98.11<\/li>\n<\/ul>\n
Top Overnight News:<\/strong><\/p>\n\n- China has warned about \u201cunwavering resolve\u201d to fight U.S. \u201cbullying,\u201d saying it could retaliate after U.S. President Donald Trump blacklisted Huawei. The U.S. restrictions on Chinese telecom giant Huawei threatens to snuff out a nascent recovery in semiconductor demand, a key driver of economic growth in technology powerhouses including South Korea and Taiwan<\/li>\n
- Trade tensions have derailed the global economy, plunging it onto a low-growth track that\u2019s clouded by risks, according to the OECD\u2019s latest outlook. The report sticks to the gloomy tone long held by the Paris-based organization, which has warned that trade disruptions could ricochet throughout the world economy<\/li>\n
- For overseas investors, a weaker Chinese currency is the latest factor making yuan-denominated assets less attractive. They\u2019ve been selling mainland-listed stocks at a record pace and their demand for Chinese bonds has been relatively tepid<\/li>\n
- Hong Kong is set to price its first ever green bond denominated in dollars on Tuesday, to become the second Asian government after Indonesia to raise such debt<\/li>\n
- Angela Merkel is preparing for a clash with France as she pushes Germany\u2019s most ambitious bid yet for a top European Union job. The German chancellor is focused on securing the presidency of the European Commission or the European Central Bank for one of her compatriots, according to officials with knowledge of her thinking<\/li>\n<\/ul>\n
Continue reading at: https:\/\/www.zerohedge.com\/news\/2019-05-21\/global-markets-sea-green-after-trump-temporarily-eases-huawei-restrictions<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Global Markets A “Sea Of Green” After Trump Temporarily Eases Huawei Restrictions<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-122893","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts\/122893","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=122893"}],"version-history":[{"count":0,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=\/wp\/v2\/posts\/122893\/revisions"}],"wp:attachment":[{"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=122893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=122893"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateofthenation2012.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=122893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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