January 28, 2023

Trump seek to tie up loose ends worldwide > 18.05.2018 Highlights

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Following North Korea’s move to cancel talks with S. Korea on Tuesday and reconsider its summit with USA, Trump tries to soften Kim’s concerns. At the same time, Seoul expressed its intention to act as an intermediary between Washington and Pyongyang.

Trump assumed that China may influence North Korea. China responded that it stands for stability and peace on the Korean peninsula. North Korea – US summit remains doubtful.

Trump has to confront EU on China trade talks and 2015 Iran Deal

Germany’s chancellor Merkel is going to visit China on May 24-25. The target of the visit is to boost ‘mutual trust’ amid global trade concerns about protectionist trade measures undermining growth, according to Reuters.

The European Commission is to launch the activation process in order to revive the ‘blocking statute’. It is an old law which will be used to ban European companies from complying with US sanctions against Iran. This law goes back to 1996 and it was drafted to defend companies doing business with Cuba from US embargo. The 28 EU leaders agreed to rescue the 2015 Iran Deal. In their meeting in Sofia, on Wednesday, they decided to try keeping the accord alive if Iran respects the Deal.

Russia supports the proposal of holding a meeting with EU on Iran sanctions next week.

Syrian President Assad visited Putin to discuss on Syrian conflict. Russia and Assad entered into an alliance in 2015. Russia launched its military operation in Syria in order to be a key player in the Middle East. United States and EU are sharply critical of Russia’s action.

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MARKETS

The US Dollar inched up to a fresh high for 2018 overnight against yen, supported by rising US yields. US 10-year bond yield climbed to the highest in six and a half years. Greenback rose to 111.005 Yen.

Euro edged up slightly, 0.1 percent, recovering from Wednesday’s five-month low as Italy concerns soften. The common currency was affected by the Italian political developments threatening Eurozone stability.

The Sterling fell against US Dollar and Euro, as worries about Britain’s stay within EU customs union remain.

Gold prices moved lower as US Treasury Yields continued to increase which led US dollar to hit five-month peak. After its worst week since December, the most valuable metal tries to retreat.

Oil prices remained almost unchanged after hitting their highest since November 2014 on Thursday. However, crude oil is not far from $80 per barrel. Increased demand, reduced supply, OPEC supply cuts, tension in the Middle East and upcoming US sanctions against Iran are among the most decisive factors.

Sources: Reuters, Euronews, CNN Money

PLEASE NOTE The information above is not investment advice.