GLOBAL NEWS-
Mexican and U.S. officials are set to resume talks in Washington on Thursday aimed at averting an imposition of tariffs on Mexican goods, with President Donald Trump saying “not enough” progress on ways to curb migration was made when the two sides met on Wednesday.Frustrated by the lack of progress on a signature issue from his 2016 election campaign, Trump unexpectedly told Mexico last week to take a harder line on illegal immigration or face 5% tariffs on all its exports to the United States starting on Monday, rising to as much as 25% later in the year.
A bipartisan group of U.S. lawmakers introduced a bill on Wednesday to force Chinese companies listed on American stock exchanges to submit to regulatory oversight, including providing access to audits or face delisting.Chinese authorities have long been reluctant to allow overseas regulators to inspect local accounting firms - including member firms of the Big Four international accounting networks - citing national security concerns.In spite of a 2013 agreement that ended a stalemate over the issue and allowed U.S. regulators to request audit working papers in China, there have been difficulties in actually gaining access.
China is expected to report a sharper drop in exports for May as higher U.S. tariffs bite, while imports are likely to contract in a further sign of weakening domestic demand that could spark more stimulus measures.If Monday’s trade data are in line with the gloomy forecasts, it could add to fears of a global economic recession as the U.S.-China trade war intensifies.China’s exports in May are expected to have declined 3.8 percent from a year earlier, according to the median estimate of 13 economists.
The Reserve Bank of India cut its policy interest rate by 25 basis points in a widely expected move on Thursday, while also changing its monetary policy stance to “accommodative” after the economy grew at its slowest in over four years.The six-member monetary policy committee (MPC) cut the repo rate to 5.75 percent. The reverse repo rate was reduced to 5.50 percent.All six of the MPC members voted for a 25 basis points cut, and for the policy stance to be changed to “accommodative” from “neutral”.
The yen edged up versus the dollar on Thursday as sentiment soured over U.S.-Mexico talks on tariffs and immigration, fuelling broader concerns about global trade hostilities and raising appetite for safe-haven currencies.Mexican officials met with their U.S. counterparts for negotiations in Washington on Wednesday aimed at averting U.S. tariffs on Mexican goods next week, although there were no immediate signs of a rapprochement.In a move that could deepen Washington’s trade conflict with its partners, U.S. President Donald Trump unexpectedly told Mexico last week to take a harder line on curbing illegal immigration or face 5% tariffs on all its exports to the United State.
China’s central bank on Thursday lent 500 billion yuan ($72.32 billion) to financial institutions via its one-year medium-term lending facility (MLF), keeping the interest rate unchanged, it said in a statement.The interest rate for the one-year MLF was 3.30 percent, the People’s Bank of China (PBOC) said, the same rate as the previous operation.The fresh fund injection effectively offsets the maturing of such loans to the tune of 463 billion yuan on the same day.
The European Central Bank will try to give an ailing euro zone economy a boost on Thursday and may even set the stage for more action later this year as an escalating global trade war saps growth and unravels the benefits of years of ECB stimulus.With pervasive uncertainty already denting trade, big central banks like the ECB and the U.S. Federal Reserve appear to have given up plans to tighten policy, and markets are now positioned for easing.In a long-flagged move, the ECB will likely offer to pay banks if they borrow cash from the central bank and pass it on to households and firms.ECB President Mario Draghi is not expected to do much more than that because he will want to keep some measures in reserve as the economic outlook darkens.
Australia’s central bank cut rates to a record low on Tuesday and signaled willingness to go further as a worsening Sino-U.S. trade war raises recession risks for the world economy, pushing policymakers into what could be a global monetary easing cycle.The Reserve Bank of Australia (RBA) lowered rates by a quarter of a percentage point to 1.25%, the first easing in nearly three years. The move comes a day before first-quarter data is expected to show the A$1.9 trillion ($1.33 trillion) economy hitting its weakest annual growth in a decade.RBA Governor Philip Lowe said the rate cut was designed to support employment growth and lift inflation, which has consistently undershot its 2%-to-3% medium-term target.
Gold prices were stable on Thursday, hovering below the 15-week high hit in the previous session, supported by trade worries and a possible U.S. rate cut, even as some investors locked in profits in bullion after a recent rally.Spot gold was up 0.1% to $1,330.69 per ounce as of 0349 GMT, after hitting its highest level since Feb. 20 at $1,343.86 on Wednesday.U.S. gold futures rose 0.1% to $1,335.10 an ounce.
Oil prices on Thursday hovered around their lowest levels since January as markets remain under pressure from rising U.S. supply and stalling demand amid an economic slowdown.Front-month Brent crude futures, the international benchmark for oil prices, were at $60.50 at 0108 GMT. That was 13 cents, or 0.2%, below last session’s close.U.S. West Texas Intermediate (WTI) crude futures were at $51.62 per barrel, 6 cents, or 0.1%, below their last settlement.