ASIA STOCKS STARTED THE WEEK ON A POSITIVE NOTE
Asian shares lifted the sentiment today although Wall street closed in red on Friday .The up move was majorly by Chinese equities and the Yuan’s stronger than expected daily fixing . However gains in Gold prices raised investor worries over risks from a prolonged Sino-U.S. trade war. The MSCI’s broadest index of Asia-Pacific shares outside Japan MIAPJ0000PUS booked gain around 0.02%.
CHINA CENTRAL BANK PREPARES FOR TRADE CUM CURRENCY WAR
IMF in its latest report said in the lieu of recent escalation of tensions China should keep its exchange rate flexible. Further the policy makers are holding back from rolling out the monetary stimulus by analyzing the options as the trade standoff with the U.S. risks morphing into a global currency war.
OIL PRICES STAYS FLAT
Oil prices hanging around $54 as the sentiments dragged down by an economic slowdown and worries about the Sino-U.S. trade war.
ITALY SOVEREIGN CRISIS SHOOK BOND AND EUROPEAN STOCK MARKET
European stock markets closed lower on Friday after there is unrest in Italy political arena as the League party leader Matteo Salvini called for a snap election as the ruling coalition was unworkable. The DAX closed lower by 0.3% while the pan-European Euronext 100 had slipped 0.4 per cent. Yields on two-year Italian government had risen to 0.235% their highest level since June.
UK ECONOMY SHRINKS IN Q2 FIRST TIME SINCE 2012
UK economy trauma shows no sign of respite as the latest report from Office for National Statistics suggest economy contracted by 0.2% in April – June Quarter. The decline was majorly due to stockpile and the car industry implemented shutdowns. The pound sank against the dollar raising fears of a recession.
US EQUITY CLOSED ON WEAK NOTE
U.S. stocks were closed lower on Friday amid weak earnings. The S&P index closed down minus 19.44.2 -0.66% at 2918.65, the NASDAQ index closed down -8.015 points or -1.0% at 7959.14 and the Dow close down -90.75 points or -0.34% at 26287.40.
PETER NAVARRO SAYS US EQUITY MARKET BULLISH AND MAY TAKE STRONG ACTION AGAINST CHINA ON DEVALUATION OF YUAN
Over weekend, Navarro the trade advisor said from White House U.S. may take strong action against China on the grounds of devalues Yuan to ‘neutralize tariffs’. Since tariffs were announced the Chinese yuan has fallen by about 12%. He added, the US is not doing government contracts with Huawei and they had done everything to negotiate with China. Moreover, when the Fed raises interest rates, it harms American’s export growth.
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