Economic News, Page 4

A string of weak economic data and an escalation in the U.S – China trade war drove the majors, which also led to a surprise move by the RBNZ.

US PPI remains subdued

The global markets are mixed as trade war conditions escalate and economic data is stronger than expected.

The People’s Bank of China fixed its midpoint for the yuan at 7.0136 against the dollar on Friday – the second time this week the benchmark was set weaker than 7. China’s consumer price index in July rose 2.8% on-year – its fastest year on-year pace since February 2018, according

Can the rebound continue? Trump Twitter account will need to remain on the quieter side later on in the day to let the numbers do the talking…

Energy shares rallied as crude oil rebounds

The major U.S. stock indexes are expected to open the cash market higher, based on the pre-market futures trade. Investors are shifting toward “risk-on” sentiment because of a stable yuan and firming U.S. Treasury yields. These two markets will influence prices all session.

Global equities edge higher as bond yields stabilize but fears remain.

Did the RBNZ change the monetary policy landscape in the region, with its aggressive rate cut and forward guidance? Will the RBA follow suit?

It’s data light, with the ECB Economic Bulletin the only market driver from the Eurozone. China trade data and geopolitics will drive the majors today.

Asian central banks ease more than expected

The U.S. futures fall as Treasury rates crash, the market has entered correction and momentum is building.

Some economists are saying that the escalating trade war and its impact on the global economy are not the only reasons for slowing labor conditions. They blame the slowdown in hiring on the fading stimulus from last year’s $1.5 trillion tax package.

“The decision by (Chinese President) Xi Jinping to allow the (Yuan) to dip a little bit is the Chinese equivalent of a tweet,” Daniel Russel, former assistant secretary of state for East Asian and Pacific Affairs said.

“U.S. monetary policy cannot reasonably react to the day-to-day give-and-take of trade negotiations,” Bullard said Tuesday in a presentation to the National Economists Club in Washington. He further added that policymakers may need to get accustomed to greater trade uncertainty.

Following 3 consecutive days in the red, the European majors may find support early on, though earnings and German data could spoil any chance of a rebound.

China is accused of currency manipulation

Global markets are mixed following an escalation of trade tensions. A trade war is the new status quo.

The financial markets reacted to the move in the Yuan in dramatic fashion. The safe-haven Japanese Yen plunged, Asian equities bounced off their lows, but more importantly, the major U.S. equity indexes turned positive for the session.

After a broad-based sell-off to kick off the week and following last week’s losses, can support kick in to stem the tide?