Stocks Boosted And Yen Subdued On Coming US-China Trade Negotiation

Market Reviews

Japanese Yen has seriously declined while the stock market sentiment broadly improved. Nikkei rose 0.47% to the maximum of more than 3 months at 28865.86. Japanese shares gained as well. Hong Kong HSI increased 1.1%. This was considered as a reaction to Donald Trump’s concession to China. The US President agreed to help Chinese tech company ZTE. This week, Liu He (Chinese Vice Premier) will come to Washington to resume trade negotiation. Meanwhile, the single currency and Pound have lifted but the impulse is feeble.

John Bolton (Trump’s national security advisor) discussed the idea of leaving the Iran nuclear pact. Bolton said it was “possible” for the US to put sanctions on European firms that continue to cooperate with Iran. He claims: “it depends on the conduct of other governments”. The advisor noted also that “the president said in his statement on Tuesday that countries that continue to deal with Iran could face U.S. sanctions. Europeans are going to face the effective U.S. sanctions, already are really, because much of what they would like to sell to Iran involves U.S. technology, for which the licenses will not be available.” However, he added that “hopeful in the days and weeks ahead” a good deal will be made.

Theresa May (British Prime Minister) told Hassan Rouhani (Iran President ) that Britain was committed to the Iran nuclear deal. The PM demanded release of jailed British Iranians “on humanitarian grounds”. Tomorrow, UK, German and French Foreign Ministers will sit down to discuss Iran nuclear deal after US withdrawal. On Friday, US, Canada and Mexico concluded a round of NAFTA negotiations without a deal to modernize. But, the sides are ready to keep working and the talks are yet to be resumed.

This week marks numerous speeches from ECB and Fed members, RBA protocol, US-China trade negotiation, New Zealand annual budget, British and Australian employment numbers, Japanese Gross Domestic Product, Canadian Consumer Price Index and finally US retail sales as well as regional Fed surveys.