Financial Analyst/Content Writer, RADEX MARKETS
Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS.
COMPARTIR
Investors hoping for some kind of resolution on Iran following Trump’s visit to China have been left disappointed. The meeting between the two leaders appeared to focus almost entirely on trade, the most important aspect of which is China’s commitment to purchase $17 billion worth of US agricultural products annually through 2028. Other agreements, relating to reducing tariffs on non-critical goods, are expected to be negotiated in the coming months. With regards to Iran, or Taiwan for that matter, very little emerged from the latest summit, dampening prospects of de-escalation in the Middle East. In the same vein, recent drone attacks in the UAE and Saudi Arabia have done nothing to improve sentiment in the region. Adding fuel to the fire, President Trump claimed that “the Clock is Ticking” for Iran, potentially opening the door for further military intervention. Predictably, oil prices rose again this morning, with the Brent Crude benchmark climbing to $111 per barrel and WTI rising to $107.
With the US-China meeting out of the way, markets are facing a void of activity going into this week, leaving traders on unsure footing. Asian indices are a mixed bag this morning; the Nikkei 225 lost 1.5% at one point before partially paring losses; the Korean Kospi index fell over 4% as the session got underway before rising back into the green; finally, the Hang Seng shed 1.5% earlier today, finding little support on the way down. Currencies have yet to pick a direction, although last week’s surge in the US dollar is threatening Asian currencies with fresh lows. The Japanese yen tapped 159 against the Greenback this morning, while the Korean won is once again above 1,500 per dollar. The Euro meanwhile is clinging onto $1.16 for dear life as cable struggles to stay above $1.33. The DXY rose 1.5% last week as traders increasingly abandon the possibility of an imminent interest rate cut.
Precious metals are still reeling from last Friday’s brutal selloff, which saw gold lose over $100 per ounce. Silver fared even worse, crumbling 9% as strength in the dollar pulled the rug from under non-yielding assets. The sudden shift has metals acting sheepishly this morning as the week gets underway. Cryptocurrencies are looking equally frail after a cascade of liquidations knocked Bitcoin down from $82,000 late last week to under $77,000 this morning. Crypto investors were granted a rare spark of hope after the Clarity Act advanced to the US Senate last week, although no date has been set for a vote as of yet.
The economic calendar is exceptionally barren over the next few days. Japanese GDP figures may provide some interest on Tuesday, followed by inflation data from Canada, the UK and Europe over the next few days. The best traders can hope for are the latest FOMC minutes, set to be published late on Wednesday. The comments justifying the latest rate hold are unlikely to provide much in terms of novel insight, but the meeting was symbolic in that it marked the final chapter in Jerome Powell’s tenure as Fed Chairman. Fortunately, the lack of scheduled economic events is overshadowed by an absolute behemoth on the earnings calendar. Nvidia (NVDA) will report its first-quarter earnings after the closing bell on Wednesday and expectations are, as usual, sky-high. The chipmaker hit a $5.7 trillion market cap last week and is up 20% so far this year.
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