Greenback Weak, Stocks Keep Falling
US marked didn’t manage to recover. DOW dropped -132.36 points (-0.54%). S&P 500 fell -0.49%. NASDAQ was down -0.86%. 10 year yield declined -0.028 to 2.838. Nikkei reduced -0.22%. China’s Shanghai SSE fell -0.44%. Hong Kong HSI decreased -0.79%. Aussie and Kiwi have mildly reinforced. Japanese Yen is trading as the firmest. Dollar is weak ahead of Independence Day Holiday.
WTO Council on Trade in Goods, which consisted of over 40 countries condemned potential cars tariffs from Donald Trump. Japan and Russia said the action could cause a collapse of the rules-based multilateral trading system. EU states joined the statement. US Trade representative refused giving commentary.
Peter Praet (ECB chief economist) stated that “progress towards a sustained adjustment in inflation has been substantial so far.” And, “the underlying strength of the euro area economy, together with well-anchored, longer-term inflation expectations, provides grounds to be confident that the sustained convergence of inflation will continue in the period ahead, even after a gradual winding-down of net asset purchases.” The chief economist outlined 3 elements of progress assessment, which are convergence, confidence and resilience. ECB forecasts headline inflation of 1.7% and core inflation of 1.9% in 2020.
Australian trade surplus on goods and services extended to 0.827 billion Aussie in May. April’s figure was revised broadly down from 0.98 billion to 0.472 billion Aussie. Exports increased 4% mom to 33.562 billion Aussie. Imports were up 3% mom to 34.735 billion Aussie. Retail sales surged 0.4% mom in May. April’s figure was revised up from 0.4% to 0.5%. Chinese Caixin PMI services grew from 52.9 to 53.9 in June. The PMI composite lifted to 53.0. British BRC shop price index was down -0.5% yoy in June. Today, Eurozone features PMI services revision and Britain presents PMI services.