The US dollar continues to weaken ahead of this week’s meeting between Presidents Xi and Trump in Tokyo. Currencies, commodities and shares are all apparently pricing a resumption of negotiations between the two economic powerhouses. Asia Pacific investors are looking at a flat start to the trading week, although tensions between Iran and the US may call attention to the energy sector.
Despite further positive moves for industrial commodities, and French and German manufacturing data surprising to the upside, global share markets weakened on Friday night. However most major markets recorded a gain for the week. Crude oil rose more than 10% over the five sessions as tensions between Iran and the US increased. In response Qantas is avoiding flying over the Straits of Hormuz.
Optimism on the trade outlook may once again prove unfounded. While the resumption of talks is a positive, the structural and cultural impediments remain difficult. Both leaders may see political advantage in prolonging the dispute.
Supermarket group Metcash will reveal its full year result today. Analysts’ forecast centre on a net profit of $215 million dollars. Biotech Mesoblast could see market support after announcing an approval for its heart cell therapy from the US Food and Drug Authority.
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