Daily Analysis - 29/05/2019
The U.S government once more has chosen to not describe its trade war rival China or any other nation as a currency manipulator. However, on Tuesday a report to Congress showed that the government is keeping China on a list of nations whose trade actions may not be in line with the United States policy. Trump administration stated that no nation fits the standards to be identified as one trying to obtain unfair trade dominance over the U.S by manipulating its currency. Although the release said that 9 nations China, South Korea, Ireland, Germany, Japan, Italy, Malaysia, Vietnam, and Singapore are closely watched.
On Wednesday, Gold was steady while global economic fears lowered the risk desire. However, a strong greenback capped profits as it struggled to get preference over the popular yellow metal as a safe-haven choice. U.S. Gold futures went higher by 0.2% to $1,279.19 an ounce while the Spot gold went 0.1% higher to $1,279.75 per ounce.
On Wednesday Oil dropped due to fears that a U.S-China trade conflict could create a global economic retraction. However, a comparatively steady supply due to OPEC output cuts and political tensions in the Middle East provided some assistance. U.S WTI crude futures fell 64 cents to $58.49 while Brent crude futures were down 51 cents to $69.59 a barrel.
U.S. investment firm Tortoise managing director James Mick said “Crude oil was weak ... primarily as the bears on demand are winning compared to the bulls on supply".
On Wednesday the U.S. stock index futures were slightly below, while continuous trade tensions supported fears regarding the global growth prospect. Dow futures slid more than 100 points, registering a negative start of almost 100 points. Futures on the S&P and NASDAQ were both seen lower. Risk appetite has dropped recently with weak economic numbers in significant economies resuming concerns of a global slowdown.
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