"The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A. Trade must be fair and no longer a one way street!" - Trump wrote on
Trump threatened to impose a 20 percent duty on cars that are collected in EU countries and sent to the US unless Europe waives the reciprocal duties after limiting imports of steel and aluminum by $3.8 billion.
The US is currently imposing a 2.5% duty on all imported cars from the EU. Europe, in turn, takes 10% from imported cars from the US. Trump wants to achieve equality on the path to a trade war.
In addition, Trump plans to prohibit many Chinese companies from investing in the US IT sector to prevent the transfer of technology and theft of intellectual property.
Investors reacted extremely negatively to these statements. The indices closed in the red zone. NASDAQ (-2.09%), S&P 500 (-1.37%). There is a possibility of further development of the situation, which could have a very negative impact on the entire global economy. Investors are fearing another recession.
Outcome Meeting OPEC
The key event of last week for the oil market was the news from the meeting of OPEC+ countries. The official announcement stated that members of the oil market and some non-member countries agreed on an increase in production of about 1 million barrels per day (b/d) starting in the beginning of July.
"The modest increase in supply only partially compensates for the barrels that were lost due to the ongoing crisis in Venezuela, and it will do little to address the problems with future supplies," experts say.
On June 22, trading on the oil market culminated in significant growth. Perhaps, it was due to the closing of speculative short positions formed ahead of the OPEC meeting.
The market has already reacted to the decision, which is a good driver for further positive development of the scenario. Most likely, when we see the actual reaction to the adopted agreement, the price of Brent crude oil will reach its previous highest levels.
Considering the current news background, the key events this week will be
- The EIA Weekly Petroleum Status Report in the US (27.06. 17:30)
- Changes in Donald Trump's Twitter. https://twitter.com/realdonaldtrump
The best instruments in this period of instability on the market this week: EUR/USD, AUD/USD, EUR/JPY, USD/JPY.