US – China trade talks resumed? – Markets on the verge of a break lower
|Important News for the day
-
Fri, 30th, DE German prelim CPI.
-
Fri, 30th, 14:30 CET US core PCE price index.
Trade uncertainty
With the parting of Elon Musk as an advisor to the US government some uncertainty might be added. The court appeal in terms of global- trade might add surprise moves to markets, which could increase over the weekend. According to Scott Bessent trade talks with China have stalled and next moves would need to come from China, says the former hedge- fund manager, now secretary of treasury. Only little progress has been made after the talks in Geneva two weeks ago. More talks are needed and a phone call between Trump and Xinping might help to “weigh in with each other”. China had not made any comment on this matter today. Also Chinese stocks had corrected slightly after the news.
Market talk
Stock markets shows signs of potential profit taking. Not only because it is the last trading day of the month today but also because of the tariff- war between the US and China. With the appeal of the US government, reciprocal tariffs will continue to be implemented. The uncertainty might currently cause further negative momentum in equities. Most indices have printed a negative candlestick pattern yesterday and the moves might hence turn negative momentum today. Furthermore the AUDUSD currency pair keeps pushing lower, which might indicate some negative sentiment in the first days in June. Also oil prices keep moving lower but potential further output output might have been priced- in already. Caution should hence be applied while trading the markets today.
Tendencies in the markets
-
Equities correcting, USD weak, Bitcoin sideways, ETH positive, oil sideways, Silver positive, Gold positive, JPY weak.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.