Daily Analysis - 03/09/2019
The resolution of the ongoing trade war between the US and China is in the US President Donald Trump's hands. In order stop the delay to find a resolution to the trade war matter, and agree with China, according to Chinese advisor Wang Huiyao the U.S must be more open. China has already exercised “all efforts” and one of the steps China took was by establishing a new foreign investment law in March. That step was taken to address any matters that the foreign business community criticized, according to Wang.
On Tuesday the yellow metal Gold dropped due to a stronger greenback. However, concerns regarding global economic retardation fed by an escalating US-China trade war held gold near multi-year tops. US gold futures advanced 0.2% to reach $1,532.19 an ounce while Spot gold fell 0.5% to $1,523.25 per ounce, but still near last week’s highest level since 2013. $1,554.55.
On Tuesday oil was mixed while the continuing US-China trade conflict confused markets. South Korean data supported concerns over emerging markets and a rise in OPEC output.
U.S. crude fell 21 cents, to $54.89 a barrel while Brent gained 5 cents going to $58.70 a barrel. This week the United States forced a 15% tariff on a mixture of Chinese goods and China started to force new taxes on a $75 billion of products, thereby increasing tensions.
GBP is heading for its weakest levels versus the greenback in more than two years due to increasing fears, while British legislators are preparing to take the first step with a vote to prevent Prime Minister Boris Johnson from achieving a no-deal Brexit. Johnson’s rivals will vote on a system that would allow them to take control of the parliamentary program on Wednesday to attempt to pass a law that will force Johnson to ask a three-month suspension to U.K's departure. On Tuesday GBP fell 0.23% to $1.202 in the Asian session, having dropped 0.8% yesterday and that is the biggest drop in more than three weeks.
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