18.05 - Treasuries stand still, oil gains
- by Anna K.
China has a new proposal for America, Brexit talks hit a dead end once again and crypto market suffers from the losses – markets overview.
Talks in Washington between Chinese and American officials are ongoing. Members of the Chinese delegation have offered their American partners a package of measures which can help establishing trading balance between the countries by shortening the deficit by about $200 billion.
The demands were made by Washington and certain measures will have to be taken by 2020. China’s offer includes killing the tariffs for importing some American production. Among others fruit, nuts, pork and wine are on the list. According to Reuters source the main profitability will be gained by Boeing. The company is responsible for about ¼ of the import.
In 2017 trading deficit between the countries reached $375.7 billion. Besides evening that up Washington also demands to China also include lowering the tariffs for American import.
With hopes that her new proposal on Irish border will be accepted by the European counterparts Prime Minister of Britain entered Brexit negotiations yesterday. But Europeans weren’t as thrilled and understanding of the new proposal, thus rejecting it. Theresa May was hoping to get the most of the meeting which took place in Bulgaria but that was denied to her. The main point of the negotiation is the question of Irish border.
The problem has been around for a good part of Brexit talks and for now there seems to be no decision which can please all of the sides. For example, after hearing the proposal, EU President Donald Tusk stated that it is too early in the process to be accepting any of the proposals as London is seding out mixed signals.
Main task for May is to preserve current trading relationship between the UK and EU after Brexit is finalized, but this hardly seems possible. She is trying to solve the problem with Irish border according to the European rules, but that might not work for the Tories – British political party who are more than loud about their pro-Brexit position. As may is trying to balance the decision in favor of Europe, Tories might just try and push May out of the office for this.
Now British youth is very keen on the idea of the second referendum which can undo the Brexit vote, but organizing it seems to expensive and difficult for the government of the country, who seemingly want to stock with the first decision no matter how difficult the process is.
A Blockchain Week started in New York. For both crypto traders and just side spectators it is a really rich event. There are expensive cars, giant yachts for partying and even endorsing form celebrities, present at the event. Of course, the official part includes speeches from experts and market bulls who are ready to make excellent predictions for crypto. But reality is not as sunny as one would hope.
Even though such events are supposed to boost interest of the public to various topics, like crypto and as a result take prices for digital coins higher, today it is not the case. According to Coinmarketcap source, just in a week all of th coins dropped enough price to draw the whole market lower than $52 billion point. Although in the midst of the forum a prediction for $50 thousand per Bitcoin prediction was made, nothing got in the way of Bitcoin’s losing 5.2 percent of the price going to almost $8.000 per coin.
This performance by the digital money may indicate several things and not all of them are reeking with positivity. It is highly likely that the successthat Bitcoin saw in the end of 2017 may never be repeated and that investors have already lost all of the interest in it despite people still buying and trading it. it is doubtful that Bitcoin will be able to come under such regulation and as a result the price for it may never come to the new peaks. A lot of Wall Street traders have already rejected the market as a financial bubble.
With negotiations between American and China are going through Asian stocks are performing much better that their European vis-à-vis. Treasuries are still on the same high level although today they are still just like greenback.
MSCI Asia Pacific gained 0.3 percent.
MSCI World Index of developed countries is up less than 0.05 percent.
MSCI Emerging Market advanced 0.2 percent.
S&P 500 Index Futures are 0.3 higher.
Stoxx Europe 600 lost 0.2 percent.
Dollar lost 0.1 percent against the basket of six major currencies.
Euro gained 0.2 percent - $1.1818.
Pound gained 0.05 percent - $1.3518.
Yen lost 0.1 percent - $110.85 yen per dollar.
WTI oil gained 0.2 percent - $71.35 and is now on the highest point in more than three years.
Gold lost 0.05 percent - $1.290.70 per ounce.