Headlines over the weekend were mostly risk-positive. Trump and Xi have agreed to recommence trade talks which had abruptly broke down earlier in the year. In addition, Donald Trump became the first sitting President in history to set foot in North Korea where he was greeted by Kim Jong-un.
Markets have reacted very positively to the weekend’s developments. The greenback has opened up firmer against the majority of its counterparts. Stock markets are roaring higher to the tune of 1%+. Government bond prices are lower as recent tension across financial markets eases. Lastly, oil prices have jumped significantly higher as OPEC look likely to agree to extend production cuts, this in turn is supporting the Canadian dollar, the commodity currency driven heavily by the price of oil.
It’s now a fresh month which means we’ll see another round of the usual global data-points. The next 5 days sees important releases from numerous regions. Highlights include: German employment (this morning), UK PMIs (manufacturing today), US manufacturing (today) and US non-farm payrolls (Friday).
Much of the first 48 hours of the week will be spent digesting the weekend’s developments. There will also be focus on the Tory leadership race which is now in its final few weeks. Johnson is still the front-runner by a long way. Unless there are any major hiccups it’s likely he will be announced Tory leader and the new prime ministers on the 23rd July.
Written by Viv Savani. 8:46am, July 1st 2019
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