Daily Market Review – 6.12.2018

US

US data was sparse yesterday owing to closed markets commemorating President Gearge Bush; and despite markets closing Tuesday down 3-4%, this morning’s index futures show no sign of relenting. Yesterday, after Donald trump had his exhuberant post handshake news of Chinese trade concessions bowled over by everyone else who was there, the US president fired of several warlike tweets threatening the middle kingdom with mayhem. The result – a dive in said futures to the tune of a percent minimum across the board, that pulled down the rest of the world with it. In other US news, Mortgage applications eased of by more than half to 2% in November. Canada is maintaining its 1.75% interest rate. It’s statement, though, warns of a downside risk to economic growth, which will probably be exacerbated by falling oil prices.

Asia

Chinese celphone manufacturer Huawei continues to be beleaguered by spying accusations, after the daughter of its founder was arrested in Canada yesterday. The news only helped to pressure stocks FURTHER down, the Hang Seng losing 2.6% over the session. Also, Japan’s central banker Haruhiko Kuroda told parliament overnight that Q3’s negative GDP growth was not in line with the country’s expanding economy, but assured speculators that he had no intention of raising interest rates or lower asset purchasing in the near future. In Australia, the local dollar declined on a disappointing trade surplus, down 600 million to 2.32 billion in October on 3% additional imports. These DECLINED in September, while retail sales added 0.3% in October. .

Europe

European retail failed to grow by the expected 2.1% in October, but still added 1.7% year on year. PMIs yesterday came in all green yesterday, except UK services which dropped 2 points to 50.4 in November – a 28-month low. With indications that Parliament will not push through Thersa May’s Brexit deal, expectations are for her to return to brussels in hopes of achieving more concessions. Meanwhile, in Germany factory orders added a paltry 1/3%, better than the expected 0.4 contraction, though, in light of continuing trade-war pessimism.

Commodities

Like yesterday, oil continues zigzagging in the 52-54 region despite the beginning of OPEC’s latest meeting in Vienna. Pundits are claiming that Saudi Arabia this week managed to pull Russia on board for further production cuts, despite the wishes of US President Donald trump. Gold reversed gains overnight, losing $5 on the ounze and bouncing off of support at 12-40.

Events

Still ahead today, US employment figures ahead of tomorrow’s NFP. At 1:30 canadian trade data, and a 2:45 US PMIs. At 3 we zigzag back to Canada fro ITS pmis, and at 2 am, foreign reserves in China.

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