· The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.737, close to yesterday’s highs but still off levels above 98.1 seen last week.
The Japanese yen traded at 109.52 against the dollar after weakening from levels around 109.3 in the previous session. The Australian dollar changed hands at $0.6923 after slipping from levels above $0.693 yesterday.
· As trade talks between the U.S. and China increasingly center on Chinese treatment of foreign companies, Beijing says major American complaints about structural aspects of its economy are running up against “core interests.”
The implication: Those matters are not up for negotiation.
Previously, the vague “core interest” term was generally understood as referring to Beijing’s territorial claims, such as those on Taiwan. But a commentary piece published this weekend by state news agency Xinhua emphasized that China will not yield on its prerogative about how to manage its economy.
· Tan Min Lan, Asia-Pacific head of chief investment office at UBS Global Wealth Management, predicted that any deal between the U.S. and China will likely only come “just before 2020.”
“It’s quite clear that trade tensions have re-escalated and at this point in time, there isn’t enough pain on either side for a deal to be imminent,” Tan told CNBC’s “Street Signs” on Monday. “If you look at United States, actually the economy is quite strong ... On the China side, we know that it is able to at least stabilize the economy.”
· Canada took a first step toward ratifying a new North American trade agreement on Monday just three days ahead of U.S. Vice President Mike Pence’s trip to Ottawa to discuss passage of the treaty.
The deal known as the USMCA, which would replace the 25-year-old North American Free Trade Agreement, has yet to be approved by legislatures of the three participating countries - Canada, Mexico and the United States.
The United States struck deals on May 17 to lift tariffs on steel and aluminum imports from Canada and Mexico, removing a major obstacle to legislative approval. Pence is due to meet Canadian Prime Minister Justin Trudeau in Ottawa on Thursday.
· U.S. President Donald Trump said on Monday a deal with Iran on its nuclear program was possible, crediting economic sanctions for curbing activities Washington has said are behind a spate of attacks in the Middle East.
“I really believe that Iran would like to make a deal, and I think that’s very smart of them, and I think that’s a possibility to happen,” Trump said during a news conference with Japan’s Prime Minister Shinzo Abe in Tokyo.
· Oil prices rose more than 1% on Monday, supported by Middle East tensions and OPEC-led supply cuts as well as continued crude disruptions from Russia after a contamination problem discovered last month.
· Output reductions - both voluntary by the Organization of the Petroleum Exporting Countries (OPEC) and allies, plus those resulting from U.S. sanctions - have helped Brent crude, the global benchmark, rise by about 29% this year.
Brent settled at $70.11, rising $1.42, or 2.07%, after having fallen by about 4.5% last week. U.S. West Texas Intermediate crude futures were up 59 cents, or 1%, to $59.24 a barrel at 1:52 p.m. ET.
· Public holidays in the United States and Britain on Monday limited participation, keeping volumes low.
Reference: CNBC, Reuters
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