July 12, 2018 - The Bell is about to Ring

12^th July 2018 - The Bell is About to Ring

1. Trade War Effects didn’t last long on World Stocks, they rebound

World Stocks seemed to be on a recovery mode post the escalation in the US led China trade tariffs, shaking off some burden that sprang on them with the comments from the Trump administration yesterday.

Wednesday losses were sort of made up by Shanghai Composite and Shenzhen Composite as it closed a little over 2%, showing to be the leading gainer in the region, whereas Asia shares also closed with positive signals.

European Stock markets also showed a slightly higher movement in all the sectors. DAX more or less currently shows an unchanged graph with moving up by about 50 points in the first half of the day. FTSE is growing since the day break with almost 68 points above its open.

The Wall Street however shows no regret to the trade war fears, with its DOW Futures doing about 175 points positive movements, NASDAQ 100 Futures also rose by about 40 points and looks like may get stronger by the day.

Market however focuses on the continued “Every Action has a Equal & Opposite Reaction” between the US-China on going trade tariffs war, whereby most investors, analysts and economists feel that the ongoing struggle on business between the two most important economies may not be a good sign for the global economy on the whole.

2. Yen keeps going towards the bears, against the Bulls strong-hold on USD

As was lately decided in the Federal Reserve Minutes that the interest rates would hike at least 2 more times in the current year, which resulted in the USD reaching a fresh six monthly high against the Yen.

The greenback was 0.4% higher against the yen at 112.46 (USD/JPY), not only Yen but the Dollar held high against all its peers in the last trading session.

China’s Yuan having been greatly stressed over the past fortnight, showed some courage and strengthened about 0.3% overnight.

3. Global Economic Calendar

German HICP (Harmonized Index of Consumer Prices) & CPI (Consumer Price Index) witnessed a same result as forecasted at 2.1% for its YoY June data, thus showing the consumer price inflation ratio and consumer prices have maintained stability in Germany.

US Consumer prices have released at 2.9% as per the forecast, showing a 0.1% overall increase compared to the previous reading, also the Consumer Prices Excluding food & energy has met its forecast thus projecting core inflation to rise 2.3% year-on-year, which fairly sums up the cause of the stronger going Dollar.

4. Oil continues to be volatile

Oil saw a steep fell yesterday from USD 73.93 a barrel to USD 70.00 a barrel due to the news that Libya resumes its oil exports again, more so Libya would re-open some of its ores which could increase supply of Oil into the markets.

Today however saw a positive trend in crude oil as the International Energy Agency (IEA) said that, world's oil supply cushion might be stretched to the limit due to production losses.

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