Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Markets Rally As Trade Hurricane Downgraded To Storm

Published 27/03/2018, 09:33 am
USD/JPY
-
XAU/USD
-
GC
-
HG
-
CL
-
DXY
-

Originally published by CMC Markets

Investors overnight edged away from pricing the worst case global trade war scenario. A lack of White House tweets and optimistic comments from Treasury Secretary Mnuchin over the weekend saw US shares roar back to life. The sentiment shift came too late for European stocks. Although industrial commodities rallied, further gains for gold sounded a warning note.

As seemingly always the US dollar fell in response. Tellingly the Japanese yen fell further as safe havens including bonds came under pressure. Just as gold ran against the trend away from safe havens, copper dropped despite gains for most other base metal and oil prices. The lack of consistency across asset classes points to investor disagreement about the outlook and is an indication of potentially higher volatility to come.

The response of Asia Pacific futures markets reflects caution. Opening gains for stocks of 0.5% to 1% look tepid against the 2%-3% lift in US indices. A lack of significant data during the session may see currency markets dominate. Strengthening local currencies are rarely a positive for regional markets but are unlikely to overwhelm today’s risk on buying.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.