Summertime market's mood soured by Trump - ANZ
|Analysts at ANZ explained that markets initially traded with a positive tone overnight, though trading was thin, as is typical of this time of year.
Key Quotes:
"However, the mood was soured somewhat by Trump’s move to dissolve two business councils (before they could disband, seemingly), as it was seen as indicating the hurdles for Trump’s business agenda continue to grow. The reaction to the Fed minutes was also mixed.
Equity markets in Europe continued their move higher with the DAX and CAC 40 up 0.7% and the FTSE up 0.7%, but US equities lost steam in response to Trump’s decision and then the FOMC minutes, with the S&P 500 up just 0.1% at the time of writing. Bond markets rallied into the FOMC minutes and then held their highs (see below for Fed commentary).
The benchmark US 10-year Treasury yield is currently down 5bps. Oil was lower (WTI spot -1.5% at USD46.90/bbl at the time of writing) despite EIA reported crude oil inventories being down 8.94m barrels. Gold was up 0.8% to $1282/oz."
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.