Sentiment Firm On The US-North Korea Summit

Market Reviews

The sentiment is firm. Japanese Yen has significantly dropped. Kiwi and the greenback have both reinforced. Markets are focused on the summit between the US and North Korea.

Canada House of Commons passed a unanimous motion standing by the government on retaliation measures against US. The House “strongly opposes the illegitimate tariffs imposed by the United States government against Canadian steel and aluminum works”. And it “stands united in solidarity with the Government of Canada in its decision to impose retaliatory tariffs”. And it “rejects disparaging ad hominem statements by the US administration which do a disservice to bilateral relations and will fail to resolve this trade dispute”.

Christine Lagarde, International Monetary Fund’s managing director, expressed her strong concern about looming trade war. Roberto Azevedo, World Trade Organization Director-General, claimed: “the US has been focusing much more on bilateral – unilateral even sometimes – measures, which is not something that is support of the rules-based trading system”, adding: “they have been complaining about the system, they say that they want to improve the system, but we would expect a more constructive approach on their part.

Australia NAB business condition declined -6 pts to 15 in prior month. Business confidence fell -5 pts to 6. Business conditions are sustained. Japanese BSI large manufacturing reduced to -3.2 in the second quarter. Domestic CGPI was up 2.7% yoy. Today, Britain releases job numbers and wage growth, Germany presents ZEW economic sentiment and US feature Consumer Price Index.