iFund- Daily Market Commentary

2019-05-31 01:57
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30/5/2019

Trump announced tariff on goods imported from Mexico. The vice chair of the Federal Reserve said that if the economic outlook is facing downside risks, more easing policies may be needed. The British Chancellor said that holding a second referendum on the Brexit may be preferable to another election in order to resolve the UK’s Brexit deadlock. Chinese central bank officials have played down the pressure in the financial system, saying that the depreciation of the yuan is under control.

      • The Dow Jones Industrial Average closed at 25,169.88 points, up 43.47 points or 0.17%. The Standard & Poor’s 500 Index closed at 2,788.86 points, up 5.84 points or 0.21%. The Nasdaq index closed at 7,567.72 points, up 20.41 points or 0.27%.
      • US President Trump announced that  a 5% tariff will be imposed on all goods imported from Mexico from June 10 until the country prevents immigrants from entering the United States illegally; if the immigration crisis continues, the tariff rate on Mexican goods will be increased to 25% on October 1.
      • The vice chair of the Federal Reserve Clarida said that the US economy is good and the current monetary policy is appropriate, but the Fed is paying attention to downside risks. If the outlook faces downside risks, it means that more easing policies may be needed.

      • The UK’s FTSE 100 index closed at 7,218.16 points, up 32.86 points or 0.46%. The Frankfurt DAX index closed at 11,902.08 points, up 64.27 points or 0.54%. The French CAC40 index closed at 5,248.91 points, up 26.79 points or 0.51%.
      • The Deputy Governor of the Bank of England, Ramsden, said that the response to the UK’s non-agreement to Brexit is two-way. If the Brexit moves smoothly, the UK will need to raise interest rates.
      • The British Chancellor said that holding a second referendum on the Brexit may be preferable to another election in order to resolve the UK’s Brexit deadlock.

      • Japan’s Nikkei 225 index closed at 20,942.53 points, down 60.84 points or 0.29%. The yen closed at 109.730 against the US dollar, down 0.301%.
      • According to the data from the Bank of Japan, the increase of Japan’s corporate service price index unexpectedly slowed to 0.9% year-on-year in April, which is an 11-month low and a decline of 0.2% by month ending two-month rise (previous value continued rising 0.7% to at least one-year high), while the market originally expected a slight increase of 1.2% .

      • The Shanghai Composite Index closed at 2,905.81 points, down 8.89 points or 0.31%. The Shanghai and Shenzhen 300 Index closed at 3,641.18 points, down 22.73 points or 0.62%. The RMB closed at 6.907 against 1 US dollar, up 0.038%.
      • Chinese central bank officials have played down the pressure in the financial system and the renminbi. The central bank governor Yi Gang said that  the risks of small and medium banks are fully under control, and the renminbi will remain very stable. Sun Guofeng, Director of the Monetary Policy Department, reiterated that in face of a complex global situation,  there should be sufficient space for monetary policies.
      • A spokesperson for the Chinese Ministry of Commerce said that the US has continuously upgraded trade frictions and actions, which has seriously hampered economic and trade negotiations. If an agreement is to be reached, the US needs to show sincerity and properly resolve China’s core concerns.









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