Jun 04 2020 0
Today, we get back to the latest and most important news that will affect the market greatly. Check them out and see what forex trading strategies you should apply.
Tension in the air
The Trump administration is suspending Chinese airlines' passenger flights to the United States, saying it was a retaliation after Beijing banned U.S. airlines from returning to China. The Department of Transportation said Wednesday's order will take effect on June 16, although President Donald Trump may act sooner if he wishes.
Beijing has prevented US airlines from restarting service to China, although four of their airlines have continued to fly to and from US airports this year. US airlines have requested to resume service as early as June 1. This is the latest in a long list of conflicts between the United States and China over issues including trade, the coronavirus pandemic and the reaction to Hong Kong.
British banks support Beijing
Two British institutions that once dominated the Hong Kong banking system - HSBC Holdings Plc and Shanghai Banking Group - will support Beijing amid a stalemate over a proposed new controversial and worried security bill. concerned about the future of the old colony. British Prime Minister Boris Johnson said he would give about 3 million Hong Kong residents an opportunity to find new life in Britain if China was determined to implement the plans. Meanwhile, German Chancellor Angela Merkel and Chinese President Xi Jinping agreed to cancel the upcoming European Union - China summit.
One of Singapore's top political leaders, said the city state faces a "major and urgent challenge" in the next 6-12 months, warning there will be more job losses than before. when coronavirus outbreaks occurred. Comments from Tharman Shanmugaratnam came after he chaired the first meeting for a council of business groups and government leaders to look for new job opportunities in an effort to cope with the delay. of the economy.
He said: "There are about 10,000 jobs, both permanent and temporary, that can be created from that initiative. However, we have to be realistic. Absolute uncertainty in the global economy is synonymous. with fewer opportunities for new jobs than we lose - next year, and even more if we're unlucky. " Singapore's approach to the coronavirus epidemic will be a defining issue in upcoming elections. Meanwhile, the city will also reduce post-isolation tourism restrictions on Chinese business and business trips as countries seek to revive essential economic activities.
Optimism in the financial market
The rally in global stocks is likely to last until Thursday as investors are still clinging to optimism about a rapid economic recovery after the pandemic. Treasury Bond yields soared and the dollar fell. The futures market increased in Japan, Hong Kong and Australia. The Nasdaq 100 earlier quickly surpassed its February closing price and banks helped the S&P 500 climb to its highest level since early March. Gold and Treasury bonds slumped. fell as investors turned away from safe-haven assets after US private payrolls showed less unemployment than forecast in May. In another scenario, the euro was seen to gain force on Saturday as data showed the region's economic activity in May rose to its highest level in 3 months. Traders are excited by the optimism that OPEC+ will rebalance the market soon.
OPEC + leaders have issued an ultimatum: Stop cheating in oil production quotas, otherwise they will begin to eliminate strict measures to help revive oil prices. Saudi Arabia and Russia have reached a preliminary agreement to extend the production restraint for another month. But to ensure commitment from other members, there is a condition that they must follow what was agreed and also to compensate for the past non-compliance with the additional cuts.
This tough stance has caused greater uncertainty for the oil market and pushed international crude prices lower on Wednesday, just hours after they raised prices above $ 40 / barrel - the first since from the pandemic. If there is no new deal, the group will begin to relax cuts next month - agreeing with a landmark deal mediated by President Donald Trump in April helped end the oil price war.