Summary for the 24th of June 2019


Prior to the last G20 summit in Buenos Aries in December 2018, the uncertainty in the financial markets was high. The trade conflict had escalated with both the US and China’s tariffs. There had been a truce in the conflict with months of negotiations. But at the start of May 2019, the US announced further tariffs. The tariffs had since then been risen to 25 percent on some of the imports from China, and the trade conflict isn’t about tariffs anymore, proven by the US’s ban on Huawei. The tension on Friday’s G20 summit in Osaka is thus high.

All this while there is a high tension between the US and Iran. The downing of the US surveillance drone has increased the uncertainty in the financial markets and fear of escalation in the region. Oil price has risen over 65 dollars a barrel, not because the oil production in Iran is considered high, but the production in Saudi Arabia, The United Arab Emirates, Iraq and Kuwait might be affected if the tension increases even further.

Eurozone PMI flash estimates released on Friday show that the manufacturing and services sectors are still raising. The composite flash estimates show a weaker growth for the second quarter of 2019. The service sector is holding its own positive sign with the PMI value of 53.4, while it is less optimism from the manufacturing sector with a PMI value of 47.8, indicating a lower activity onwards.

This week, the inflation numbers from the Eurozone and the US will be released.

Indices for 24.06.2019
Dow: -0.1% (21st  of June)
S&P 500: -0.1% (21st  of June)
Nasdaq: -0.2% (21st  of June)
Nikkei: +0.2%  (24th of June)
STOXX Europe 600 Index: -0.25% (24th of June)

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