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Powell Pushes Rebound in Global Equities | Trump Prepared to Impose Mexican Tariffs

Published June 5, 2019
  • After Federal Reserve Chair Jerome Powell stated that the central bank may be moving towards the direction of a rate cut yesterday, there was an immediate response in US equities with more than a 2% gain in the S&P 500 Index which continued into Asia trading. The MSCI Asia Pacific Index also climbed 1.1% while Japan’s TOPIX index closed 2.1% higher on the news.
  • President Trump has continued to warn that he is completely serious regarding his threat to impose 5% tariffs on goods from Mexico. Later this afternoon, Mexican Foreign Minister Ebrard will be meeting officials at the White House in an attempt to find a way to placate the president.
  • Commerce Secretary Wilbur Ross said the US will take steps to ensure it doesn’t get cut off from supplies of rare earth minerals despite China’s strategy to impose export controls on the materials. This is another sign of the rising tensions between the two nations; China seems prepared to target US corporate interests in the country.
  • Final May PMI data for the euro area was published this morning when the composite reading was revised slightly higher to 51.8. This comes as manufacturing continues to be a drag on growth prospects in all major euro area nations.

To the Clients of EncoreFX:

 

It is with much regret that we inform you that EncoreFX’s (the “Company”) offices are suspending trading effective immediately.

This suspension will give the Company time to consider its restructuring alternatives. The restructuring has become necessary as a number of customers to whom the Company granted credit have defaulted on their obligations to the Company due mainly, we believe, to the rapid changes in the FX market caused by the coronavirus pandemic.

 

In order to provide stakeholders with transparency, the Company has filed an assignment in bankruptcy pursuant to Section 49(1) of the Bankruptcy and Insolvency Act (Canada) (the “BIA”) with respect to its Canadian operations and has assigned its Australian and New Zealand subsidiaries in Voluntary Administration in Australia and New Zealand. 

 

Ernst & Young has been appointed as the licensed insolvency trustee (the “Trustee”) in Canada and as the Administrator in Australia. 

 

Once the Trustee, working with the Company, has determined the best options for the Company and its stakeholders it will share that information with you. Information pertaining to the bankruptcy of EncoreFX will be available, in due course, on the Trustee’s website at: www.ey.com/ca/encorefx.