Stock Indices Improve on Lull in Trade Tensions; US Dollar Nears 11-Month High
Published June 20, 2018
US stock indices are set to move higher today as a lull in the trade spat between the United States and China has provided some breathing room for investors; for the first trading session since Friday of last week, the Trump Administration and the Chinese government have not further escalated tensions by threatening to place trade protections on each other.
The Dow Jones Industrial Average has given up all of its gains in 2018 as a result of investor fear and risk aversion brought on by these trade tensions; analysts have become increasingly concerned that the Trump Administration could actually follow through on trade threats rather than only using the threats as a negotiating tactic.
The US dollar remains as one of the few benefactors from the ongoing trade discussions; the greenback held onto its gains at a near 11-month high, pushing the USD/CAD rate above 1.3300 earlier this morning.
Oil prices remain volatile ahead of this Friday’s OPEC meeting as Iran continues to show open resistance towards the Saudi-led increase in production. Oil supply figures from the US Energy Information Administration are also set to be released today at 10:30 AM EST, which will give an overall gauge of oil and gas demand from one of the world’s largest consumers.