Morning Notes

07/12/2018 - Argonaut Morning Note

Market Update: 

US financial markets remained volatile overnight as a result of increased fears that the US – China trade truce will not last. The Dow Jones fell 0.3% to 24,948 and the S&P 500 decreased 0.2% to 2,696; The arrest of Huawei Technologies CFO in Canada provoked outrage from China at a critical point in trade talks with the US; The Trump administration is contemplating to remove a key barrier to constructing new coal-fired power plants in the U.S. The Environmental Protection Agency proposed an easing to limits on Carbon dioxide emissions from coal power plants;OPEC has ended talks without a deal on oil production cuts as Russia flexed its muscles by refusing to cooperate with Saudi Arabia’s demands to curb crude production. Brent crude fell 2% overnight to US$ 60.30/bbl; Copper sank to a three-week low and other base metals were mainly down on the LME as the arrest of a Chinese executive threatened further escalation in tensions with the U.S. Copper retreated 1.5% overnight to US$ 6,080/t; The US trade deficit widened more than expected in October to the highest in a decade, reflecting continued fallout from the trade dispute with China. The US trade deficit increased 1.7% to US$55.5 bn for October from US$55.6 bn in the prior month

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