Financial Markets Are Under Pressure due to Global Trade Tensions

May 31, 2019

by JustForex

Yesterday, the US dollar did not change a lot against the basket of major currencies. The dollar index (#DX) closed with a slight increase (+0.02%). Investors’ sentiment has worsened after it became known that the United States would intend to impose 5% duties on all Mexican goods from June 10. “On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP,” Trump tweeted. The president also noted that the size of the tariff would increase until the flow of migrants stopped. Trade tensions with other countries could adversely affect the growth rate of the global economy.

Yesterday, mixed economic data from the US was also published. Thus, GDP growth (q/q) counted to 3.1%, which met the expectations of experts. However, pending home sales index declined by 1.5% in April, although investors forecasted growth by 0.9%.

Today, during the Asian trading session China manufacturing PMI has been published, which has counted to 49.4 in May and has occured to be worse than the expected value of 49.9. We expect important economic statistics from Canada.

The “black gold” prices fell by more than 4% due to trade conflicts. At the moment, futures for the WTI crude oil are testing $56.00 per barrel. At 20:00 (GMT+3:00) a report on Baker Hughes oil rig count will be published.

Market Indicators

Yesterday, the main US stock indices closed in the positive zone: #SPY (+0.27%), #DIA (+0.24%), #QQQ (+0.42%).


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The 10-year US government bonds yield fell significantly. Currently, the indicator is at the level of 2.17-2.18%.

The news feed on 2019.05.31:

– Canada GDP data at 15:30 (GMT+3:00);
– Core personal consumption expenditures (PCE) price index in the US at 15:30 (GMT+3:00);
– Michigan consumer expectations and sentiment at 17:00 (GMT+3:00).

by JustForex

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