The U.S is crushing the trade deal

Weekly Report - 06/05/2019

Trump Tweets

trump-dampens-trade-talks


On Monday Asia stocks dropped after a statement from Trump sparked fresh tensions between the U.S. and China. President Donald Trump announced an impending rise in tax rates on $200 billion of Chinese products.

The Shenzhen composite, Shanghai Composite, and Shenzhen component fell more than 6% each. On Sunday president Trump said on a tweet he is considering to raise the current 10% on $200 billion worth of Chinese goods to 25% on Friday. He also warned that he is going to force 25% tariffs on a new $325 billion of Chinese goods “shortly.”

The Week that was


On Friday Gold hovered near a 120-day low touched in the previous session, after the U.S. FED dampened the expectations of a rate cut in the near future. That boosted the USD and set the popular yellow metal for a weekly fall.

A stronger USD makes gold more costly for buyers of other currencies. The Gold dropped about 1% so far. Spot gold was traded at $1,271.24 per ounce, while the U.S. gold futures were steady at $1,272.19 an ounce.

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Main Focus This Week


 Trade talks are set to continue in the U.S. where expectations of a deal are starting to fade out after President Donald Trump’s tweet. Even though companies are due to release their earnings results, the focus will probably remain on trade talks between the U.S and China. The center will be on the RBA rate announcement as the RBA is expected to leave rates fixed.

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