- Oil trades near two-year high
- Equities are mostly trading downwards
- Trump insults US-Japan trade
A flurry of European economic data was released this morning including; service and composite PMIs, which came in as expected. The data confirmed that the eurozone is strengthening and expanding.
The euro is slipping back after the composite purchasing managers’ index data missed expectations. Although, the data is above the 50-mark, showing signs of growth. The single currency is still up 10.9% over 2017.
European equities are dwindling, with financial stocks coming off highs after a robust earnings season.
The CAC 40 is 0.1% lower and Germany’s DAX 30 IS 0.09% weaker.
The pound is 0.25% stronger against the dollar and 0.4% higher against the greenback.
The yen has rebounded after hitting its lowest point since March. Japan’s currency took a dive as US President Donald Trump complained about the US-Japan trade.
The Japanese yen weakened by as much as 0.6% against the dollar in the wake of Trump’s comments at the beginning of his Asian tour. Trump complained that there are “massive trade deficits” with Japan.
Investors will be closely watching the tour for signals on how the trade relationship between the US and Asian counterparts unfolds.
Asian equities were lower overnight. The Bank of Japan’s Governor Haruhiko Kuroda, noted that there is excessive leverage from his Chinese counterpart Zhou Xiaochuan, sending equities into a downward trance.
The dollar is 0.07% higher against a basket of currency pairs. The greenback has added 0.17% against the euro and 0.04% against the Japanese yen.
Wall Street’s equities are forecasts to trade lower once the US trading session gets underway. However, for now, the S&P 500 is 0.04% higher and the Dow Jones is 0.1% stronger.
Oil has gotten a fresh injection of bullish news as an anti-corruption purge is enacted by the Saudi Arabian government.