Jun 05 2020 0
Check out the latest news for today, Jun 5. All of these updates will affect the market heavily. Therefore, you can choose your forex trading strategy accordingly.
"Very good"
US Trade Representative Robert Lighthizer said he felt "very good" about the progress of the first-phase trade agreement with China. In an event organized by the Economic Club of New York yesterday, Mr. Lighthizer said: "Regarding structural change, China has done quite well. And we have witnessed significant purchases. over the past several weeks. On Monday and Tuesday this week China bought soybeans worth US $185 million."
This refutes a report that Beijing has failed to meet its commitments to the purchase of goods. His comments come as tensions between the United States and China have escalated in recent weeks, raising questions about the stability of the original trade deal. Mr. Lighthizer also said the pandemic showed why the United States should have an industrial policy to ensure that the United States can produce the necessary supplies domestically, including medical equipment and protective equipment.
The Hong Kong situation
Thousands gathered in Hong Kong to commemorate the victims of the Chinese military crackdown on Tiananmen Square 31 years ago, despite the unprecedented ban on gathering this year. People have crossed the metal fence to gather at Victoria Park - the venue for the annual event - with many groups of people splitting into small groups to follow the rules of social spacing from 9 pm Thursday. In the Sai Ying Pun residential area, many people lit candles and shouted slogans outside the subway exit. While the number of people gathered was not so large compared to previous years, this concentration was noticeable because this was the first time that Hong Kong police banned the event.
Meanwhile, Senator Pat Toomey of Pennsylvania, who sponsored the law to punish banks working with Chinese officials, turned to suppress dissent in Hong Kong, said his bill. will bring "unprecedented" actions to the case. But not all senators support this measure. Some are questioning whether unilateral US sanctions will affect the situation in Hong Kong, and whether it can actually backfire.
Bearish market
Asian stocks are set to have a quiet start on Friday after US stocks fell amid concerns that recent protests have gone too far. The dollar fell along with Treasury Bonds. The futures market was unchanged in Japan, while the decline in Hong Kong and Australia. The S&P 500 index fell by less than half a percentage point, still the largest decline in 2 weeks, temporarily ending the series of gains in 4 days. Treasury Bond yields increased as the number of weekly US jobless claims decreased. Earlier, the euro rose sharply after the ECB announced a larger than expected increase for the emergency bond purchase program. Elsewhere, WTI oil prices remained stable in the context that OPEC member countries still had not complied with production cuts. Gold prices rise.
Australia effort
Australia's success in dealing with the virus-related economic crisis will not prevent the recession, but cash has fallen into a bank account, ready to accelerate the recovery process. Household bank account balances soared past the peak of the Covid-19 blockade in April thanks to the transfer of government payments and reduced spending.
Data on the number of unemployed people in Australia looking for benefits shows that access to payments is a bit delayed. That number reached its peak in mid-May, then dropped slightly the following week on May 22. The government of Prime Minister Scott Morrison is injecting an additional 259 billion AUD (178 billion USD), or 13.3% of gross domestic product, into the economy. However, not everything goes as fast as expected.
