1. US-China saga
US President Donald Trump does not intend to meet with Chinese President Xi Jinping before the deadline for signing a trade deal on March 1.
The lack of a meeting between the two leaders reduces the hopes for a trade deal and increases the chances of increasing tariffs between the two largest economies in the world.
Next week, US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer are expected to start a new round of trade talks to push a deal and prevent the increase in US tariffs on Chinese goods on March 2.
2. The dollar stays close to its two-week highs
The dollar remains close to its two-week highs amid news reports that the US and China are unlikely to end their trade war before the March 1 deadline.
A pause on rate increases by the Federal Reserve has put pressure on the dollar, as lower interest rates lead to risky assets. Recent comments from Fed representatives supporting interest rate holdings also have an impact on investors.
Dallas Fed President Robert Kaplan, one of the Fed's more aggressive members, said on Thursday that the stimulus from tax cuts for 2017 is declining, while last year's interest rate rises have not yet affected the economy.
3. Crude oil prices are falling as OPEC is threatened by US legislation
Crude oil prices fell amid the news that Congress is laying down new legislation that will allow the US government to pursue OPEC member countries that fix oil prices.
In the past, Congress has been trying to pursued such law, but it has not been accepted. Investors believe that this time is more likely to be passed, as Trump accused OPEC of manipulating oil prices.
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.