Japanese Yen Reinforced, But Then Weakened
US stock market sentiment is weak as DOW dropped -1.9%, S&P 500 fell -2.23% and NASDAQ declined -2.74%. Nikkei reached the maximum of 21056.02 but then lowered -0.43% and aligned 21300 handle. Hong Kong HSI decreased -0.7%. Japanese Yen rose to trade as the firmest, but then quickly softened. Greenback and Swiss Franc dropped as well. Both, Australian and New Zealand dollars, are boosted.
Right now, the US and China are negotiating the situation. But, Donald Trump isn’t likely to change his mind about those $60 billion tariffs. This week, the President is expected to present the list of goods from the Section 301. Yesterday, China imposed tariffs on 128 US products. A researcher at the Chinese commerce ministry’s research center Wang Hailou noted: “China does not like trade wars, but being on the side of justice, China has no choice but to enter a war to end a war. It would be beneficial for all if (China’s) friendly overtures were accepted by Washington. However, at the moment it seems intent on turning a deaf ear to any suggestion that they each make concessions to reach an amicable agreement”.
As expected, Reserve Bank of Australia stood pat, keeping the OCR at 1.50%. RBA projects unemployment to reduce and inflation to stabilize. Members also expressed their concerns about the US trade policy. Australian Industry Group Australian Performance of Manufacturing Index lifted to the 63.1 maximum from 57.5 in March. As of today’s data, Britain will publish PMI manufacturing, Eurozone will announce PMI manufacturing revision, Germany will present retail sales and Swiss will release retail sales as well as PMI manufacturing.