GLOBAL FX-
Donald Trump will plunge into Britain’s Brexit crisis on Tuesday and is likely to demand that Prime Minister Theresa May’s successor ban China’s Huawei from 5G networks as thousands of protesters mock the U.S. president across London.Feted by Queen Elizabeth and heir Prince Charles on the first day of his state visit to Britain, Trump turns to politics on Tuesday with talks in Downing Street, a news conference scheduled for 1245 GMT and a dinner that could include leaders of Brexit, such as Boris Johnson, the favourite to succeed May.
India’s benchmark 10-year bond yield dropped to a more than one-and-half-year low while shares and the rupee gained as a sharp decline in economic growth in the March quarter firmed expectations for at least a quarter-point rate cut on Thursday.India’s economy grew at its slowest pace in more than four years in the January-March period, lagging China’s growth pace for the first time in nearly two years, raising the chances the central bank will cut rates for a third straight meeting.Asia’s third-largest economy grew at a much slower-than-expected 5.8% in the last quarter, compared with 6.4% in China, government data showed on Friday.
India’s manufacturing sector expanded at its quickest pace in three months in May on improved output and new orders, according to a private business survey which also showed a pick up in hiring.The survey found increased optimism about manufacturing activity over the coming year, probably helped as Prime Minister Narendra Modi scored a dramatic election victory on a mandate of business-friendly policies and a tough stand on national security.
The Reserve Bank of India (RBI) on Monday revised its guidelines on banks’ exposure to large borrowers which had taken effect on 1 April this year.RBI had introduced the large borrower framework three years ago to reduce concentration risk in a banking industry laden with bad loans. The guidelines had capped every bank’s exposure to a group of connected firms at 25% of its core capital, and to an individual company at 20%.
U.S. President Donald Trump’s administration said on Monday that China was pursuing a “blame game” in recent public statements and a weekend white paper that misrepresented the trade negotiations between the world’s two largest economies.In a joint statement, the U.S. Trade Representative’s (USTR) office and the U.S. Treasury reiterated their view that China’s negotiators had “backpedaled” on important elements of a deal that had been largely agreed, including on an enforcement provision.
Australia’s central bank cut its cash rate to a record low 1.25% on Tuesday in what could be the first in a series of stimulus measures amid growing calls for policymakers to revive the country’s slowing economy.The Reserve Bank of Australia (RBA) lowered rates for the first time in three years with data due on Wednesday likely to show annual growth in the A$1.9 trillion ($1.33 trillion) economy slowed to a decade low of 1.8%.
Mexico said on Monday it would reject a U.S. idea to take in all Central American asylum seekers if it is raised at talks this week with the Trump administration, which has threatened to impose tariffs if Mexico does not crack down on illegal immigration.President Donald Trump said last week he would impose a blanket tariff on Mexican imports on June 10 to try to pressure Mexico to tackle large flows of mostly Central American migrants passing through en route to the United States. The move has spooked global markets worried about a new front in the U.S. trade war.
Asian shares fell on Tuesday, following a volatile Wall Street session as weak economic indicators and an intensifying Sino-U.S. trade war inflamed concerns about global growth, supporting safe-haven assets such as bonds.Investor focus has shifted to monetary policy this week with Australia’s central bank all but certain to cut interest rates to a fresh low at its meeting on Tuesday and India also tipped to ease on Thursday.Comments from the Federal Reserve on Monday, meanwhile, raised expectations the U.S. central bank is moving closer to a rate cut, as did a closely watched U.S. factory survey.
Japan and the United States will hold working-level talks on trade in the United States on June 10-11, Japan’s economy minister, Toshimitsu Motegi, said on Tuesday.During the talks, the two countries will discuss technical aspects of industrial and agricultural goods trade, Motegi told a news conference after a regular cabinet meeting.
Ireland’s manufacturing sector grew in May at its slowest rate since the aftermath of Britain’s vote to leave the EU three years ago as the impact of stockpiling fizzled out and new orders shrank, a survey showed on Tuesday.Ireland’s fast-growing economy has weathered the uncertainty created by the June 2016 vote, with the impact mainly showing itself in a ramping up of pre-production inventories ahead of the original end-March date for Britain’s departure.But the AIB manufacturing Purchasing Managers’ Index (PMI) slipped for the third time in three months, to 50.4 in May from 52.5 in April, on the unwinding of stockpiling and weaker global demand.
Gold prices held steady on Tuesday, hovering near a three-month high hit in the previous session, as global slowdown worries driven by trade conflicts amid expectations of a U.S. interest rate cut stoked investors towards the safe-haven bullion.Spot gold was down 0.1% at $1,323.81 per ounce, as of 0525 GMT, after touching its highest since Feb. 27 at $1,327.90 in the previous session.U.S. gold futures were steady at $1,328.30 an ounce.
Energy markets are being battered by spreading concerns that an economic slowdown will hit consumption of oil, natural gas and coal.Oil, the world’s most used fuel, has seen prices fall by 20% from their 2019 peak in late April, with Brent crude oil futures threatening to fall below $60 per barrel for the first time since January.Meanwhile, prices for thermal coal and liquefied natural gas (LNG), mostly used in power generation, have dropped to multi-year lows amid tepid demand.The slumps come amid an economic slowdown and escalating global trade tensions, especially between the United States and China.Brent crude futures settled at $61.28 a barrel, losing 71 cents, or 1.2%. U.S. West Texas Intermediate (WTI) crude ended 25 cents, or 0.5%, lower at $53.25 a barrel.Mexico said it would reject a U.S. idea to take in Central American asylum seekers if it is raised at talks this week with U.S. President Donald Trump’s administration, which is threatening the tariffs over immigration concerns.