1. Global Concerns Push Risk Assets Lower
Stocks in Asia declined today while European bourses started the day lower amid worries over the U.S.-China trade war and a potential budget standoff between Italy and the EU. China is also increasing its measures against the US with reports of Beijing threatening to cut off rare earths exports to the US. The risk-off mood is expected to continue with stock markets facing further losses.*
2. Forex Preview: USD Steady, EUR Drifts Lower
Against a basket of six peers, the dollar index was steady at 97.98 this morning, with the greenback still holding on to its gains, awaiting the new treasuries auction and whether China will also stop or reduce its purchases of US treasuries. Meanwhile, the EUR/USD drifted slightly lower on ongoing political jitters in the EU while the GBP/USD remained under pressure ahead of a possible 2nd referendum.**
3. US/China Tensions Intensify
Market participants are becoming increasingly cautious of risk assets, with the trade battle between Washington and Beijing proving to be a main point of anxiety for global markets. Jamie Dimon head of JP Morgan has also stated that the trade war is now becoming a real issue for investors who are clearly showing that the stress is mounting. US yields are another sign of stress as the gap between the three-month and 10-year rates dipped Wednesday to negative 12.3 basis points, the lowest since 2007.***
4. Oil Prices Tumble
Oil prices fell on Wednesday on concerns that the US/China trade war could trigger a global economic downturn. U.S. West Texas Intermediate (USOIL) crude futures were at $58.41 per barrel, down 73 cents, or 1.2% as of 8:35 GMT.****
5. Gold Gains Moderated By Strong Dollar
Elsewhere, gold prices firmed bouncing off the 200-day EMA and headed back higher as safe haven demand grew. Gains however were capped by a strong dollar as it competed with the noble metal as a safe-haven bet. XAU/USD was last seen trading 0.42% higher at $1284.73 well below the $1300 mark as of 8:52 GMT.*****
You can find and trade CFDs on all of the above mentioned assets on BDSwiss Forex/CFD platforms.
Sources:
*CNBC May 29, 2019 2:48 AM ET
**Reuters May 29, 2019 3:53 AM ET
***FXStreet May 29, 2019 03:07 AM ET
****Bloomberg May 29, 2019 06:13 AM ET
*** Investing May 29, 2019 08:54 AM ET
