US-China trade talks continue to dominate markets
Fiona Cincotta May 15, 2019 10:28 AM
Markets remain concerned about the potential outcome from the US-China trade negotiations as both sides have announced considerable additional tariffs this week.
Markets remain concerned about the potential outcome from the US-China trade negotiations as both sides have announced considerable additional tariffs this week. Traders are looking for any sign of hope for a deal and the markets responded overnight to what are seen as positive comments by Donald Trump.
The S&P closed up 0.8% which in turn saw Asian markets respond in kind. The Hang Seng was up 0.9% while the Shanghai Composite closed up almost 2%. The FTSE opened down marginally at 0.2% off.
The question now will be how the lack of progress is received domestically – both economies are not looking as healthy as they were a year ago, and a tariff war may create new pressures as companies start losing exports.
TUI results boost shares despite travel travails
TUI saw its shares trading up in early action on the London market. TUI is operating in a tough market, with Brexit just one challenge. The technical issues surrounding Boeing’s 737 MAX airliners has grounded some 10% of TUI’s own fleet and hit profits. The travel operator reported an underlying forecast loss of EUR 300 million. It is also grappling with lower margins but is reporting increased interest in holidays in the eastern Mediterranean.
Oil market lacks direction, IEA warns of supply concerns
The oil market is focusing on the potential slow down in the Chinese economy but there are concerns about the more immediate impact of tensions between the US and Iran. The IEA has just announced that the current supply surplus could potentially flip quickly into a deficit particularly if supplies from key producers are impacted.
StoneX Financial Ltd (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.