More bullying from the Trump regime as it hits former ally Canada with blanket 35% tariffs in its latest letter “diplomacy” that briefly saw the Loonie sell off sharply and rattle some Asian share markets before some stability prevailed. Some more co-ordinated US Treasury selling in the coming days or weeks could enhance the TACO trade.
Oil markets are slipping following the upside reaction to the OPEC+ production increases with Brent crude trading just below the $69USD per barrel level while gold is trying to make a comeback after retreating just below the $3300USD per ounce level:
Mainland Chinese share markets are soaring higher on expected stimulus measures with the Shanghai Composite more than 1% higher, pushing above the 3500 point level while the Hang Seng is nearly 2% higher to break above the 24000 point level. Meanwhile Japanese stock markets are somewhat negative as the Nikkei 225 stays below the 40000 point barrier with USDPY the only pair finding some strength after the Canadian tariff slug, being pushed above the 147 level again:
Australian stocks are dead flat with the ASX200 stuck at just below the 8600 point level while the Australian dollar is holding remarkably steady just below the 66 cent level against USD:
S&P and Eurostoxx futures are down slightly going into the London session with the S&P500 daily chart showing the market clearly overextended but holding after breaching the 6300 point level:
The economic calendar includes the latest Canadian employment figures plus some private oil rig data from the States, with trader’s getting ready for next week’s US CPI print.
Oh and probably a letter from Emperor Trump to the EU tonight as well.