Archives of “July 16, 2019” day

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Pompeo: Iran has said it is prepared to negotiate about missile program

  
  Analysis

Positive sign, perhaps?

This is a good signal on US-Iran relations and potentially a negative sign for oil. Trump also said a lot of progress has been made around Iran.
Perhaps the US would reinstate the nuclear deal if Iran agreed to shut down its missile program?
  • US isn’t seeking regime change in Iran, wants to work with current gov’t
  • US wants Iran out of Yemen

Trump takes aim at Google

  
  Analysis

Trump says that he’ll “take a look” at accusations that Google is working with the Chinese government

In his latest tweet:

“Billionaire Tech Investor Peter Thiel believes Google should be investigated for treason. He accuses Google of working with the Chinese Government.” @foxandfriends A great and brilliant guy who knows this subject better than anyone! The Trump Administration will take a look!

Google shares are off by about 0.8% now in pre-market trading and it’s not a good wake-up call for US equity investors with JP Morgan and Goldman Sachs earnings also erring slightly more towards the disappointing side.

IMF’s Lipton: We still see the global economy as sluggish

  
Analysis, Economy

Comments by acting IMF chief, David Lipton

David Lipton
  • Sluggish growth raises concern that a response is needed
  • China’s growth to slow gradually and more if trade dispute worsens
  • US economy has low jobless rate but no inflation pickup
  • All of Europe’s policy levers need to be ready for use
  • IMF baseline scenario is not for the world economy to stall or fall into a recession
He’s covering pretty much everything as he speaks in an interview with Bloomberg but isn’t really telling us much that we don’t already know. In case you weren’t aware, Lipton is now the acting IMF chief after Lagarde relinquished her position on 2 July as she is nominated to head the ECB next after October.

EUR/GBP hits fresh six-month high amid weaker pound

  
Analysis, Forex
  Tags

Can EUR/GBP firmly hold a break above 0.9000 today?

EUR/GBP D1 16-07

The pair has been knocking on the door of the 0.9000 handle over the past two weeks and is now hitting a fresh six-month high as the pound slips on the day. If buyers can manage a daily break above the 0.9000 handle, I reckon it could keep the rally going for a while more towards the highs seen in December and January.
As for the pound weakness today, I want to argue that it’s largely on the back of sentiment/flows but with key UK data set to be released later on today, this isn’t the first time we’re seeing something like this happen (if you catch my drift).
Let’s see what the labour market report has to offer later today before drawing those conclusions but either way, it hasn’t been a great last ten weeks for the pound against the euro and EUR/GBP bulls don’t look like keeping their horns away just yet.

Nikkei 225 closes lower by 0.69% at 21,535.25

  
Analysis, Global Indices

Tokyo’s main index closes lower in mixed session for Asian equities

Nikkei 16-07

Japanese stocks aren’t having the best of days with all sectors posting losses in trading today. Industrials and consumer staples were the heavy losers and that is contributing to the decline in the Nikkei after the break yesterday.

Chinese equities are mixed as the Hang Seng is up by 0.2% but the Shanghai Composite is down by 0.2%. Investors remain cautious for the most part with US retail sales data still to come later and little direction seen in US-China trade talks still.
Overall, markets remain more steady in general with US futures little changed and Treasury yields also near flat levels. 10-year yields are holding at highs of 2.092% currently but are only 0.3 bps higher on the session.
As such, that isn’t giving currencies much to work with as well. USD/JPY holds just above the 108.00 handle now but maintains a narrow trading range today.

ICYMI – US, China may have another trade call this week

  
Analysis, Politics

This was according to US Treasury secretary, Steven Mnuchin

US China

He was briefing reporters at the White House yesterday:

“We expect to have another principal-level call this week, and to the extent we make significant progress, I think there’s a good chance we’ll go there (Beijing) later.”

This would be the second time that both sides are officially communicating (after the trade call last week) following the Trump-Xi meeting in Osaka at the end of June. All I can say is… Don’t hold your breath if you’re expecting anything noteworthy any time soon.
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