Summary:
- Trade optimism lifts equities all around the world
- US GDP report shows downward revision to personal spending
- Market alert: 4 scenarios for the G20 summit
- Bitcoin plummets back below the $12k mark
The United States and China have supposedly agreed to a truce in the ongoing trade battle, according to revelations brought by South China Morning Post and Politico. These reports suggest that details of the agreement are to be announced in a press conference yet before the official meeting between Chinese President Xi Jinping and US President Donald Trump.
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Create account Try a demo Download mobile app Download mobile appThe headline GDP print came in at 3.1% YoY as expected and in line with the second release. However, details changed a bit. Compared to the previous reading, an upward revision was spotted for imports, exports, government consumption and gross private investments. Nevertheless, these improvements were offset by a significant downward revision to personal consumption.
After a turbulent May when markets where shocked by a return of trade wars, hopes for a return to better relations between China and the US were on the rise ahead of the pivotal G20 meeting this weekend. Will a meeting between Xi and Trump end in market euphoria or will investors be left disappointed. We present 4 scenarios.
Elsewhere, Bitcoin ended its abrupt rally with a huge decline. The most famous cryptocurrency plummeted over the night and is trading back below the $12k mark. Other digital currencies followed into footsteps of Bitcoin and took a diver lower.
Antipodean currencies can be found among G10 leaders benefiting from improved market sentiment while Scandinavian currencies are among the worst performing majors.
