Investors Assess the Political Situation

Last week, investors closely monitored trade relations between the US, EU and China. The US imposed duties on the import of goods to these countries, which was followed by retaliatory measures. On Friday, the US dollar index (#DX) moved away from the annual highs and closed in the negative zone (-0.23%). This week, attention will be focused on the further course of events. It is reported that the White House representatives are trying to hold other negotiations with China before the duties finally come into force.

Also on Friday, positive data on economic activity in the Eurozone were published. Canada published weak statistics on retail sales and inflation. In May, core retail sales index fell by 0.1%. Experts expected the growth rate by 0.5%. The consumer price index slowed down to 0.1%. This week, financial market participants expect a report on the US GDP, which may determine the further alignment of forces on majors.

The "black gold" prices are consolidating after significant growth during the Friday trading session. At the moment, futures for the WTI crude oil are testing a mark of $68.40 per barrel.

Market Indicators

On Friday, there was a variety of trends in the US stock market: #SPY (+0.47%), #DIA (+0.49%), #QQQ (-0.32%).

At the moment, the 10-year US government bonds yield is at the level of 2.87-2.88%

- IFO business climate index in Germany at 11:00 (GMT+3:00);
- New home sales in the US at 17:00 (GMT+3:00).

by JustMarkets, 2018.06.25

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.