Trade tariffs uncertainties arising from the lack of progress made between the European Union and US officials over trade negotiations, and the US has indicated that most US tariffs on the EU will not be removed.
In addition, China has ordered its airlines not to take any further deliveries of Boeing jets, as part tit-for-tat trade war measures, indicating more potential escalations between the US and China.
After the close of yesterday’s US session, media reports highlighted that Nvidia has been informed by the US White House to restrict its exports of H20 chips to China. Nasdaq 100 and S&P 500 E-mini futures reacted negatively with an intraday loss of 1.3% and 0.9% respectively in today’s Asia session at this time of writing.
Safe haven demand remains in vogue as Gold (XAU/USD), as the yellow metal added an intraday gain of 1.1% in today’s session, accelerated to a fresh all-time high of $3,266 at this time of writing.
The US Dollar Index snapped a five-day losing streak as it rose by 0.5% yesterday. However, the pound outperformed, where the GBP/USD gained by 0.3%, and rose above 1.32, to a six-month high.
Asian stock indices started today’s session on a weak footing as Japan’s Nikkei 255 reversed down after two days of gains with an intraday loss of 0.5%. On the radar next will be key China economic data releases (Q1 GDP, Retail Sales, Industrial Production) at 10.00 am Singapore time.
