An overview of the coming day in European and world markets by Tom Westbrook
The high rise in the Taiwanese dollar was the main factor of influence during an Asian session marked by the leave, marking the start of a week in charge of central banks, key economic data and investors’ reactions from Warren Buffett from the head of Berkshire Hathaway.
US President Donald Trump announced a 100 % customs duty on films produced outside the United States, ordered the reopening of the famous Alcatraz prison in San Francisco Bay and reaffirmed his conviction that China is willing to conclude a trade agreement.
The Taiwanese dollar has jumped at its highest level for almost three years during its second consecutive session of exceptional gains, fueling speculation according to which certain Asian countries are ready to make re-evaluation of their currency in order to obtain commercial concessions from the United States.
The Taiwanese dollar has no official parity, but the central bank intervenes if necessary to ensure the “dynamic stability” of the currency. Its increase of more than 6 % in two days is the largest ever recorded, according to LSEG data.
The holidays in the United Kingdom, Hong Kong, China, Japan and South Korea also slowed the exchanges on Monday, despite the deluge of major titles dedicated to Mr. Trump. In a television interview broadcast on Sunday, Trump said that he would not try to dismiss the president of the federal reserve Jerome Powell, but he reiterated his calls to a drop in interest rates and qualified the president of “rigid”.
The Fed meets on Wednesday and should, according to forecasts, maintain its unchanged rates after the publication of a solid job report in March.
The Bank of England meets on Thursday and should most likely lower its interest rates, while central banks in Norway and Sweden should keep them unchanged.
During the elections held this weekend, outgoing leaders were re-elected in Australia and Singapore, like the result in Canada, where the ruling parties were favored by the global economic uncertainty triggered by Mr. Trump.
At the same time, the extremely right Eurosceptic George Simion won the first round of the Romanian presidential re -election on Sunday, according to the almost final results, surfing a wave of nationalism at the Trump in the European Union.
Main events likely to influence markets on Monday:
Economy: ISM index of services in the United States
Results: Ford, Palantant
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