China set retaliatory tariffs on U.S. goods to start on June 1st, dropping commodities. President Trump had warned Beijing against retaliating, though he was the first to act. China’s tariffs were tactically levied on companies that drove the S&P 500 and Dow Jones Industrial Average significantly. Markets could bounce back quickly if a resolution is reached.
The Stoxx Europe 600 index was plunged into the red as most industry sectors retreated, which extended declines. Meanwhile, the European Union said it was finalizing a list of U.S. goods to target in the event Trump imposes levies on car imports.
Oil prices rose as Saudi Arabia said two of their tankers were sabotaged. Four ships were attacked when off the coast of the U.A.E. heading for the Strait of Hormuz, the world’s most important chokepoint for oil shipments. The other two ships were registered as Emrati and Norwegian respectively. Prices rose about 2% when the news broke.
Times in GMT
GBP Average Earnings Index +Bonus (Mar)
Predicted: 3.4% Previous: 3.5%
GBP Claimant Count Change (Apr)
Predicted: 24.2K Previous: 28.3K
EUR German ZEW Economic Sentiment (May)
Predicted: 5.1 Previous: 3.1
BRL BCB Copom Meeting Minutes
The U.S. plane manufacturer’s 1D chart has shown a Three Black Crows pattern indicating a strong downturn.
Cable’s 1D chart has shown a Thee Outside Down pattern indicating a continuation of the recent downtrend.