Daily Analysis - 23/01/2019
The US Administration refused to meet with China this week because of notable differences between the two economic giants over the implementation of intellectual property rules.
This week Executives from the United States were meant to meet with two Chinese vice ministers. They were supposed to work together and try to solve the trade disputes between the two countries before the 1/3/19 deadline. The meeting was canceled according to a source.
The countries late last year agreed to pause further taxes due to new trade discussions. Their intent is to come to an understanding before the March deadline.
On Wednesday evening in Asia session, we saw traders worried due to fears regarding the continuing U.S.-China trade discussions following news that the U.S has canceled a meeting with China this week.
The Topix index fell about 0.33% while Japan's Nikkei 225 increased. South Korea's Kospi went up by around 0.34%. In Australia, the ASX 200 fell about 0.36% while most areas were mixed.
On Wednesday, Gold was steady due to the need for safe-haven assets. The worries about the retraction in the global economy including uncertainties on the trade conflict between the United States and China created demand for the popular metal. U.S. Gold futures advanced about 0.1% at $1,284.19 per ounce, while the Spot gold was at $1,284.72 per ounce.
Spot gold climbed almost 0.5 yesterday while global stock markets dropped. Platinum increased 0.4% to $790 while Silver climbed 0.2% to $15.30 an ounce.
Today Oil was steady due to expectations the economic slowdown may pause for now. U.S. West Texas Intermediate (WTI) crude futures were down to $52.97 per barrel while International Brent crude oil futures were stable to $61.49 per barrel. The prices developed after an almost 2% drop in crude futures and a drop in international financial markets yesterday.
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