Market News & Analysis

New tariff worries hit stocks, hammer oil, gold and yen jump.

Jun 3, 2019 | Market Update

Today’s High-impact economic news:

11:45 CNY Caixin Manufacturing PMI

00:00 USD ISM Manufacturing PMI

 

Tariff fears continue to drive market sentiment lower, in Friday’s session markets moved sharply lower after President Trump threatened new tariffs against Mexico. This news sent stocks skipping lower, the Dow lost 1.41% and the Nasdaq lost 1.51%. What’s bad for some assets is normally a blessing for others, the Japanese Yen and Gold jumped after the news, Gold added $17 and the Yen slammed everything paired to it. The USDJPY was mauled losing 130 pips. Oil was another that slid on tariff worries, traders worried about economic slowdown leading to lower demand. Oil closed 265 cents lower. 

This morning Asian shares have started the morning in the red continuing Friday’s weaker sentiment, the ASX down 0.71%, the Nikkei down 1.02%. Traders will be looking this morning’s Chinese Caixin manufacturing PMI, market expectations are for the PMI to come in at 50.0. 

This morning risk currencies have continued to gain to the USD, the AUD NZD EUR and GBP posting gains. After Friday’s whitewash, the majors are holding up at this point to the Yen. Gold remains firm adding $3.80 including a gap on open. The AUD will be in focus tomorrow as the market will be waiting on retail sales data and the RBA meeting. Markets are expecting the RBA to cut rates to 1.25%, new historic lows. 

Today’s chart show’s Gold buyers breaking the intermediate downtrend after new tariff fears stoked demand.

Good trading from EightCap

Sources – CNBC – All times AEST

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