Danske Research Team
Danske Bank A/S
Market movers today
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There are no global key figures of interest today. Focus will continue to be on the political situation in Italy (where bond yield spreads are now wider than before the election) and on news coming out from the trade negot iat ions between China and US in Washington.
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The development in US 10-year yields and oil prices also continues to be in focus.
Selected market news
EU leaders are in Bulgaria to extend their links with partners during the EU-Western Balkans summit . The EU leaders also discussed the Iran nuclear deal, agreeing unanimously that the EU will stay in the agreement as long as Iran remains fully committed to it .
The trade with the US was also discussed. Today, the European Commission is expected to introduce a blocking statute to protect European companies doing business with Iran from the possible US sanctions. Previously, the US Treasury Department announced that companies doing business in Iran will have 90 to 180 days to cease their active contracts before facing US penalt ies.
The EU also promised to suspend t rade negot iat ions with the US unt il the EU members receive total exemption from steel and aluminium tariffs by the US.
US stocks slid and the USD strengthened as US President Donald Trump said yesterday that he doubts the US and China could agree over their foreign t rade. The world's two biggest economies have restarted negot iat ions over t rade tariffs in Washington. Trump called China and the EU ‘very spoiled'. T he negot iat ions are cont inuing t oday.
While the Brent oil price rose to USD80/bbl for the first time almost in four years, commodity exporters in the EM universe weakened together with several other EM peers on the strengthened USD and US 10-year Treasury yields hitting 3.1% for the first time in seven years.
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