Tools for Traders Top Movers | Heat Map | Pivot Point | Pivot Meters | Action Bias | Volatility Charts Action Insight Mid-Day Report: Markets Rocked by China's Speedy and Intense Response to US Tariffs US-China trade war is the dominant theme in the markets today. Initial reactions were muted to US announcement of the product list in Section 301 tariffs on China. However, global stock markets were rocked by China's immediate response of its own retaliation measures against the US. The speed of response showed that China is not backing down. The more optimistic read of today's development is that there is no implementation date for the tariffs of both side yet. And China already expressed the willingness to go back to negotiation table. But at the same time, the "intensity" of China's response surprised most of the analysts. And the tensions could escalate easily if the US respond by counter-retaliation measure. Then, the cycle will be never-ending. Nonetheless, for now, there should be much time for markets to digest the news. US public and companies will have until May 22 to comment and object to the Section 301 tariff product list. And, China will certainly not initiate any further action before the US tariffs are finalized and implemented. Crude Oil Prices Supported by Inventory Draw and Russia's Pledge to Fully Comply with Output Cut Crude oil prices climbed higher for the second consecutive day as a report showing unexpected expected decline in US inventory. Meanwhile, Russia pledged that it would fully comply with the output cut deal this month. However, caution is advised over the promise as Russian oil output has reached the highest level in 11 months in March. Currently trading at US$62.29/bbl, the front-month WTI contract ended that at US$63.51/bbl, up +0.79% on Tuesday. Meanwhile, the Brent contract gained +0.71% and settled at US$62.12/bbl for the day. Action Insight | Market Overview | Central Bank Views | China Watch | Special Topics | Oil N' Gold | Live Comments Technical Outlook GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.4023; (P) 1.4056; (R1) 1.4091; More.... Much volatility is seen in GBP/USD today but it's, after all, bounded in tight range above 1.4008 temporary low. Intraday bias stays neutral first. On the downside, firm break of 1.3982 support will indicate completion of the rise from 1.3711. In that case, intraday bias will be turned back to the downside for retesting 1.3711. Nonetheless, strong rebound from 1.3982, followed by break of 1.4095 minor resistance will turn bias to the upside for 1.4243. Break will resume the rally from 1.3711 for 1.4345 high first. Suggested Readings USDCAD Still Consolidating in Upward Sloping ChannelEscalating Trade War Concerns Underpin Gold And Undermine Risk Appetite Risk Aversion Returns As China Announces Tariffs Yen Rallies As China Unleashes New Tariffs On US U.S At War: China Retaliates To Trumps Tariffs EURJPY Maintains Weak Bias In Near Term, Broader Trend Is Bearish AUDUSD Trades Above 19-Week Low, Bullish Bias In Medium-Term Economic Data
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