US policy on trade is still weighing on market sentiment as Asian markets post losses overnight, the Nikkei225 lower by 116 points lower and the Hang Seng currently lower by 94 points. Comments by Mark Carney yesterday suggesting that the ongoing political and trade discord could ‘derail’ global economic growth did little to help the markets concerns as we head into a US holiday tomorrow.
Independence Day tomorrow so we can expect volumes and liquidity to drop slightly after midday and with Non Farm Payroll ahead on Friday, we can expect investors to remain sidelined.
GOLD, which was well bid since midday yesterday has continued to surge overnight, currently trading 1425 after touching 1437 in Asian trading. Whilst this stopped out our trades from yesterday it is quite noticeable how GOLD trades increasing erratically during Asian trading hours.