Colors: Orange Color

Global stock markets bounced and the dollar weakened following comments from President Trump that trade discussions with China were “moving along nicely” and after he supposedly, and later denied, ordered a draft of a US-China deal. Commodities struggled despite the weaker dollar with crude oil heading for its worst week since February in response to rising production and a potential lower-than-expected Iran sanctions impact.

The commodity sector remains on the defensive with rising supply hurting a diversified group of raw materials from crude oil to grains. Growth concerns in the world’s two biggest economies into 2019 put industrial and semi-precious metals under pressure while gold struggled to build on the recent recovery amid a strong dollar with a hawkish Federal Open Market Committee staying on course to hike rates further over the coming months.  

Leaving a troubled summer behind

We are emerging from a particularly eventful summer in the markets. We have seen the Argentine peso tumble, falling 50% year-to-date together with the Turkish lira which lost 38% of its value against the greenback, provoking a deep sell-off in sovereigns of these countries. Although things appear to have started to stabilise again, the reality remains alarming. Turkish political uncertainty continues to daunt investors, while in Argentina the $57.1 billion credit line provided by the International Monetary Fund may not be enough to pull the country out of its political and economic difficulties.

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