Trump confirms tariff delay for China

Daily Analysis - 26/02/2019

The U.S Equities got a boost

The President of the United States Donald Trump announced via tweets that the U.S. is not adding any additional taxes on Chinese goods at the start of March. He mentioned that he achieved "substantial progress" through mutual discussions between the U.S and China, the world's two biggest economies. Flowing the Tweet on Monday the U.S Stocks climbed. The S&P 500 advanced 0.1% to 2,796.10 while the tech sector outperformed. The Dow Jones Industrial Average grew as much as 209.60 points before finishing 60.10 points higher, at 26,091.90. The Nasdaq Composite rose more than 0.3% to close at 7,554.45.

GBP gains positive momentum

On Tuesday the GBP grew to a month top versus the greenback due to statements of a postponement of the Brexit deadline. The popular safe-haven Japanese yen left the low area seen this year while a decline in U.S. equity futures weakened investors' risk desire.

Sterling went to its highest versus the US Dollar since a month ago following News announced that Theresa May was thinking to pause the March 29 deadline for U.K.'s departure from the European Union.

The GBP was last up 0.4% at $1.3140. Michael Every, Hong Kong-based senior Asia-Pacific strategist at Rabobank, said in a note "Delaying Brexit for a few months, which the E.U. is not united on, just kicks the can down the road".

Oil fell due to Trump’s comments regarding price

On Monday the U.S. West Texas Intermediate (WTI) crude futures fell about 0.5% to $55.19 per barrel while international Brent futures dropped to $64.65 a barrel 0.2% down, from their last close.

On Tuesday, Oil prices extended their losses of more than 3% through the previous session following Donald Trump comments that called OPEC to reduce its attempts to support the market.

Brent, which fell more than 3% on Monday, dropped to $64.30 a barrel on Tuesday. That is the lowest level since Feb. 14.

Asia stocks fell

Stocks in China continued to profit from the previous trading session through Tuesday while traders asked for transparency on the U.S.-China trade talks. That happened a day later following U.S. President Donald Trump delayed a closely watched tax deadline in early March.

Tuesday, volatile session finds mainland Chinese stocks recovering from earlier declines to witness profits. The Shanghai composite climbed around 0.70% while the Shenzhen component advanced more than 0.5%. The Shenzhen composite gained about 0.6%.