Daily Analysis - 27/06/2019
UK's favorite to elect as the next British Prime Minister Boris Johnson, announced the possibilities of the UK departing the European Union with a no deal scenario are close to “a million-to-one”. The announcement came and erased his repeated commitment to withdraw the UK from the EU without a deal by October. This week the fight to replace Theresa May has heated up, with Jeremy Hunt UK's foreign minister criticizing Johnson about his approach to the Brexit matter. The victor probably will have to fight with parliament, which refused May’s agreement three times and denied a no-deal exit.
On Thursday, Oil dropped deleting a portion of yesterday's big profits, while traders are anticipating the OPEC meeting and the G20 summit in Japan. Brent crude futures fell 44 cents to $66.05 while the U.S. WTI crude futures dropped 41 cents, to $58.97. Oil surged more than 2%.
On Thursday, the popular greenback went up to a 5-day top versus the safe-haven Japanese yen. The movement came while some of the uncertainty ahead of the G20 summit eased, and took out some of the pressures due to optimism regarding the development in the China-U.S. trade war. The greenback gained around 0.3% to 108.12 yen, and that was its highest level since June 20.
On Thursday morning the U.S. stock index went up due to the hopes from the world’s two greatest economies that could soon enter into an arrangement and stop their ongoing trade war. Futures on NASDAQ and S&P advanced while Dow futures increased 59 points, registering a positive open of around 60 points.
Investor focus is mostly adjusted to the geopolitical developments, ahead of the much-anticipated meeting between President Donald Trump and Chinese President Xi Jinping this weekend.
