Stocks are up and the US$ is lower on Thursday after Donald Trump secured concessions from the EU to avoid a trade war. Stocks soared by 1% after the announcement of a deal while the US$ weakened and it looks as though we could be in for some follow-through trade in the session ahead. The meeting resulted in EU Commission President Jean-Claude Juncker agreeing to work with Trump to lower industrial tariffs on both sides, to increase natural gas exports and soy beans to Europe and harmonize regulatory standards to allow for medical devices to have better market access in Europe.
In other markets, commodities went higher, enjoying a relief rally as fears of a trade war eased, with Gold up by $7oz, while WTI was up by 1% and Copper rallied by 2%.
Thursday will get off to a quiet start in Asia, with just the Australian Import/Export Index to provide any inspiration. Things will heat up in Europe though with the ECB Meeting and Interest Rate Decision. No change to policy is expected so all the focus is going to be on Mario Draghi’s Press Conference. The US session will feature the June Durable Goods Orders (exp 2.5%, Ex-Transport 0.3%) as well as the Preliminary Wholesale Inventories (exp 0.3%) and the June Goods Trade Balance. Have a good day.
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