- The session started with a slight risk-on feel after Trump announced a deal on immigration with Mexico over the weekend. Index futures gapped higher and the Mexican peso rallied 2% higher, seeing USD/MXN unwind a lot of gains made since trump announced the tariff threat.
- The USD is currently the strongest major, NZD and AUD are the weakest. Asian equities trade broadly higher whilst gold and silver have shed -0.9% and -1.3% respectively.
- Trump defended the US-Mexican deal on immigration after critics pointed out no new concessions had been made by Mexico, vowing to offer more details (without offering any new details).
- China’s exports rose in May as exporters rushed shipments to avoid new tariffs, although imports fell to a near 3-year low.
- Japan’s Q1 GDP grew slightly faster than expected, supported by stronger capital spending although analysts warn capex is due to soften and weigh on growth in upcoming quarters. Bank lending rose to its highest level since November 2017.
- South Korea and UK agreed to sign a free trade deal ahead of Brexit.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.