In this week’s recap we find several ups and downs in the Asian and American markets, due to the trade war and the different decisions of the political leaders. On Wednesday, the Japanese trade deal & increased optimism about a possible agreement with China helped propel the U.S. stock market higher in its best day in 2 weeks. Investors are shrugging off the news of an impeachment inquiry into President Trump, while Nike shares jumped 4.2% on upbeat quarterly results. Helping sentiment, data showed that sales of new U.S. single-family homes rebounded more than expected in August, a sign that the struggling housing market is starting to get a lift from lower borrowing rates.
Asian markets mostly rose Thursday, after President Trump signed a trade deal with Japan & raised optimism with reporters at that the United Nations, that a U.S.-China deal could come sooner “than you think”. The Japanese trade agreement reduced tariffs on some agricultural & industrial goods for both sides.
Key oil freight rates from the Middle East to Asia rocketed as much as 28% on Friday, in a global oil shipping market rattled by United States sanctions on units of Chinese giant COSCO for alleged involvement in ferrying crude out of Iran. That means an increase of about $600,000 for each ship, a Singapore-based crude oil trader insisted. The situation will inevitably lead to higher international crude oil prices.
Trump and Abe sign deal to cut tariffs; Saudi Arabia has restored most of its oil output; sales of U.S. single-family homes rebound in August; U.K. Prime Minister faces resignation demands; EU & Japan sings infrastructure deal; Tesla’s update lets customers summon their car to the current location.