The European Union will seek Asian support for free trade, the JCPOA and combating global warming at an EU-Asia summit. China, Japan and Russia, among other, will join the EU-Asia summit as a counterbalance to a more protectionist United States.
Leaders from the EU, Switzerland and Norway will welcome 21 Asian counterparts after an EU summit dominated by Brexit negotiations. The 51 gathered leaders are set to show “strong support” for the WTO that President Trump had threatened to quit.
Forex news – Bits & Pieces from Reuters, apart from EU-Asia summit
Many Japanese companies have avoided a direct hit from escalating trade frictions so far. However, they increasingly worry about the impact on their businessaccording to BOJ officials. Companies were worried that higher U.S. tariffs imposed on China: 1) could trigger an inflow of cheap Chinese goods to Japan and 2) disrupt supply chains or hurt their profits.
EU leaders seek stronger euro zone as Italy challenges rules. Further, European Union leaders will discuss on Thursday how to make the euro zone more resilient to crises. Τhe bloc’s third biggest economy, Italy, challenged EU budget rules that underpin the single currency.
Britain is considering other ways of making progress in Brexit negotiations with the European Union. They do not just consider a mooted extension to the transition period, Prime Minister Theresa May’s spokeswoman told on Thursday.
Forex – Commodities
The dollar stepped back from a one-week high on Thursday as investors took profits after a rally this week. Fed minutes signalling more rate hikes in store encouraged this rally.
The Swiss franc and the Japanese yen also gained across the board.
The British pound was flat versus the dollar after May said London is willing to discuss an extension of the transition period after Brexit.
The euro changed hands at $1.1519 on Thursday, up 0.2% versus the greenback, after losing 0.65 percent on Wednesday. Further, the euro has lost less than a percent versus the dollar so far this month.
Oil prices fell $1 a barrel to below $80 on Thursday as the fourth weekly increase in U.S. crude inventories suggested adequate supply. Saudi-U.S. tension and falling Iranian exports supported the drop. Brent crude futures fell by 94 cents a barrel to 79.11$ a barrel. In addition, U.S. crude futures fell by 77 cents a barrel from their last close.
Sources: Reuters, CNN money, BBC
PLEASE NOTE The information above is not investment advice.