Trump Grants Reprieve for Chinese Investment; OPEC Increases Production
Published June 27, 2018
OPEC has agreed to increase production, as oil prices continue to rise. West Texas Intermediate for August delivery was trading at $71.14 at the time of writing, encouraged by concerns over supply. Some of the world’s biggest buyers are considering complying to Trump’s demands that they stop buying from Iran.
The Bank of Canada has hinted that it is ready to raise rates in the second half of 2018, but policymakers have concerns both internally and on the global stage. The escalating trade war between the US and China could have serious repercussions for the Canadian economy.
The pound hit lows of $1.3164 against USD this morning as investors digested comments from Governor Carney. Despite no significant UK data releases to assess this week, the sterling has seen movement as markets react to a range of statements, specifically that the UK has vulnerability to “global risks that are material and increasing.”
Core Durable Goods Orders data will be available early this morning with a lower than expected reading estimated; US durable orders are expected to decline for the second month in a row as core measures attempt to paint a more constructive picture.
President Donald Trump has indicated that he will take a less confrontational path toward curbing Chinese investments in sensitive American technologies, potentially relying on a US committee that scrutinizes foreign acquisitions for national security risks.