Wyllian Capucci
06/10/2021
First call
Contact between the US and China is slowly re-starting as ministersof Commerce of the two superpowers made their first call since President JoeBiden took over. The two nations have agreed to strengthen trade and trade ties.investment and exchanged views “frankly” during the conversation. Some aspects ofUS policy towards Beijing is becoming clearer, with Biden changing theban on American investments in Chinese companies earlier this month – although thefate of last year’s ‘Phase One’ trade deal remains uncertain. the tax agreementglobal signed by the G-7 last week could be another critical point, with peoplefamiliar saying that China will likely seek exemptions
CPI clock
Key US inflation data for May is due out at 9:30 ameastern US, with a faster-than-expected reading, likely to bolster theFederal Reserve case to start discussions on the withdrawal of the stimulus. The report of theLast month showed that prices rose the most in April since 2009, in a sign that theeconomic recovery continues to gain momentum. Although the data dump can helpstocks out of their restricted range, bond traders are actually reducing theirexposure to treasury bonds before the numbers
End it
As they gather for the summit in Cornwall, the G-7 leaders are putting together a planto end the Covid-19 pandemic by December 2022. The bosses of the richest countriesof Earth will promise to deliver enough vaccines next year to help cover 80% of thethe world’s adult population, according to a draft statement seen by BloombergNews. The US plans to buy 500 million doses of vaccine from Pfizer Inc. to helpin that effort. In another step towards normality, European Union authoritiesapproved vaccine passports to allow for unquarantined travel within the block
Sleepy markets
Global equities remained stable as traders waited for clueson the outlook for monetary policy in the CPI data. Overnight, the indexMSCI Asia Pacific rose 0.4%, while Japan’s Topix index closed with fewchanges. In Europe, the Stoxx 600 Index was stable as of 6:50 am, with stocks oftravel and leisure weighing on the indicator. The S&P 500 futures also remainedvirtually unchanged, the 10-year Treasury yield was 1.499% and goldit fell
Coming
In addition to the US inflation numbers, both the weekly jobless claimsInitial and ongoing orders are due at 9:30 am. The monthly budget statementfor May arrives at 15:00. The European Central Bank publishes its latest policy decision at8:45, with a conference statement from President Christine Lagarde 45 minutes later
Source:https://wintrademarkets.com/
