AUTHOR: Steve Oram
Stock Markets worldwide rallied as investor optimism increased for a resolution in the Trade war and this saw the US Dollar index edge higher.
President Donald Trump has said efforts to end a US trade war with China were going great, with expectations for a deal to be signed on the first phase middle of next month. White House economic adviser Larry Kudlow told media that 15% U.S. tariffs on many consumer goods imported from China, including cellphones, laptop and tablet computers, could be withdrawn if negotiations continue to go well.
People’s Bank of China Governor Yi Gang emphasized that the country’s policy focus remains on keeping its debt load under control, hinting that there may not be much more stimulus in the pipeline after last week’s 6% GDP growth print. Two major policy meetings are scheduled for the coming weeks, with little sign yet that there will be a push to ensure growth remains at around 6%.
.AUD crept higher building on 5 week highs as the USD succumbed to expectations on an impending rate cut even ad the RBA signal another month of holding. Our currency remains sensitive to ongoing BREXIT, Trade and Global slow down fears.
In the Canadian election Prime Minister Justin Trudeau appears set to retain power in a close election in Canada today, despite likely losing his parliamentary majority. This would force the Liberals to rely on a left-leaning NDP party to survive a second term. The Liberals are still close in the popular vote with the Conservatives. The last polls had the two leading parties deadlocked at 32%.
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