Japanese Yen Mildly Boosted, Stocks Still Soft
Japanese Yen has mildly risen to trade as the strongest. Pound reinforced as well. Aussie, Loonie and Swiss Franc are the softest. Meanwhile, stocks keep slumping. Nikkei fell -1.0%. HK HSI reduced -0.9%. China SSE dropped -0.9%.
The European Union is planning a meeting with the world’s largest auto exporters of US, South Korea and Japan to avoid the trade war. Jean-Claude Juncker (European Commission President) might offer to arrange a meeting with the President Trump. Some also speculate that the latter will end the trade friction if EU and US drop all tariffs on car imports.
Takako Masai (BoJ board member) claimed that “outcome of protectionist moves in the United States as the downside risk that is of greatest concern”. In the short term, “growing uncertainty over U.S. trade policy will likely lead to a sharp rise in volatility in global financial markets”. This could cause “adverse effects on the sentiment of firms and households.” In the medium-to-long term:“if such protectionist moves were to increase globally, this may significantly affect the business strategies of global firms, and the subsequent impact on the capital flow of trade and investment cannot be ignored.”
Today’s data marks German factory orders, Eurozone retail PMI, Swiss Consumer Price Index and US ADP employment, unemployment claims and ISM services. Additionally, FOMC will release a protocol of its June meeting.