Trade War Optimism Fades | US Imposes Economic Sanctions on Iran
Published November 5, 2018
Chinese President Xi Jinping displayed no signs of concessions to the US in a speech at the Shanghai Trade Fair. Xi strongly condemned protectionist trade practices in an indirect attack on the Trump Administration’s policies. The latest optimism of a breakthrough on the trade war is quickly fading in this latest demonstration of Chinese resolve.
US economic measures against Iran came back into full effect; the White House increased pressure on the nation over the country’s behavior in the region. The US administration is scheduled to list eight countries granted temporary waivers permitting them to continue to import Iranian crude. A barrel of West Texas Intermediate is trading at $62.88, continuing losses from the previous week.
With one day to go before the midterm elections, markets are bracing for the possibility of a split congress where Democrats gain control of the House while Republicans retain the Senate. This year’s midterm congressional campaign is projected to cost $5 billion, making it the costliest in US history.
Canada released jobs data last week that has demonstrated minor employment gains with a reduction to the labour force and slowing wage gains. The latest data on the economy is unlikely to persuade the Bank of Canada that a faster pace of rate increases is required.