Asian markets start the week with mixed anticipation. Concerns over the trade war still hang in the air.
The shocking win for Australia has brought a rally in the Australian dollar. At the weekend elections, Prime Minister Scott Morrison’s party has won. The Australian dollar went above its support levels, jumping up by 0.7 percent against the American dollar. The Australian ASX was up by 1.62percent.
Japan was able to show good economic data that has brought some cheer to the Japanese market. It has shown growth by 0.3 percent and has crossed expectations, showing growth for the first quarter.
However, the Shanghai Composite was trading down by 0.41 percent. Hang Seng was down by 0.57 percent.
In Europe, the pound was trading at 4-month lows. The Brexit deal still hovers while uncertainty in the exit keeps investors worried. The Labor opposition talks have not been good with Prime Minister Theresa May as they were unable to reach a favorable decision in the EU exit.
China is facing a severe slowdown with the hike in tariffs delivered on its exports. However, it has threatened to retaliate with tariffs which will take effect from June 1. With no further negotiation in sight, global markets continue to show concern over it.
The U.S. has banned telecom firms and the Chinese company Huawei is in the list of banned companies.
Meanwhile, the crude output would be reduced says, Saudi Arabia. The OPEC + countries have agreed to keep up the output caps as per agreement. Pressure continues in the Middle East with the sanctions imposed by the U.S. on Iran oil. West Texas Intermediate oil was trading at $63.70 per barrel. Brent crude was at $73.30per barrel. Crude oil prices are moving towards a six-month high on Monday.
After reports that talks with China have stalled, the Nasdaq composite and the S&P index have gone below their 50-DMA.