US-China trade amongst market movers today – Danske Bank

According to analysts at Danske Bank, the US-China trade war continues to be the most important driver in financial markets, but in the short term, we may not get much new information as no new measures are likely to be announced from either side.

Key Quotes

“The next thing to look out for would be comments about a new round of talks or a potential phone call between Xi and Trump. It could initially be seen as positive. However, we would caution that the two sides seem quite far from each other on some key elements and we could end up in a war of attrition where it takes financial stress for the two sides to find a compromise.”

“On the data front we have a batch of US key figures this afternoon. The Philadelphia Fed business confidence index for May will give more clues to the development of the US manufacturing sector.”

“We will also learn more about the state of the US housing market with the release of building permits and housing starts for April. The housing market has generally seen some improvement in recent months, most likely due to the decline in mortgage rates.”