Japanese Yen and Greenback Remained Firm, Asian Market Still Weak
US stocks have significantly improved. DOW dropped to the minimum of 24077.56 but then jumped 0.15% to 24307.18. S&P 500 rose 0.31%. NASDAQ was up 0.76%. Asian market, on the other hand, wasn’t as cheerful. Shanghai SSE composite dropped -1.27%. Hong Kong HSI fell -2.73%. Nikkei declined -0.83%. Singapore Strait Times lowered -0.49%. Meanwhile, Japanese Yen and the greenback remained the firmest. Kiwi is still weak.
Aussie was slightly boosted by RBA policy statement. The cash range remained at 1.50. Economic outlook is unchanged. Terms of trade are projected to weaken over the next couple of years. Employment stays in a good shape. Wage growth and inflation stay weak. RBA said: “An appreciating exchange rate would be expected to result in a slower pick-up in economic activity and inflation than currently forecast.”.
Donald Trump met with Dutch Prime Minister Mark Rutte in Washington. The US President published a statement to the World Trade Organization. He said WTO has treated the US “very, very badly and I hope they change their ways”, adding that the US has “a big disadvantage with the WTO. And we’re not planning anything now, but if they don’t treat us properly, we’ll be doing something.”
Canada’s retaliation measures against the US steel and aluminum tariffs came into effect. The tariffs cover more than 12 billion dollars of US products. The list includes steel and aluminum, coffee, pizza, condiments, whiskers etc. Sarah Sanders (White House spokeswoman) claimed: “escalating tariffs against the United States does nothing to help Canada. It only hurts American workers.” And: “we’ve been very nice to Canada for many years, and they’ve taken advantage of that – particularly advantage of our farmers.” And, “the president is working to fix the broken system, and he’s going to continue pushing for that.”
Japanese monetary base increased 7.4% yoy in June. Australian building approvals fell -3.2% mom in May. Today, Britain issues PMI construction, Eurozone presents retail sales, Canada releases PMI manufacturing and US announces factory orders.