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Oil Prices Getting Slippy & Trump Backtracks on Huawei

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Phew. Take a breath. July is here (how?!) and another busy week is careering toward its conclusion, and what a week it’s been! But don’t breathe too easy, just yet – you’ve still got to make your way through what is surely the highlight of your week – our regular sideways look at the most important financial news! Let’s see what’s been moving the markets this week.

Oh-PEC, Don’t Do It!

OPEC+, an alliance of crude oil producers containing the 11 OPEC members + 10 non-members, held a pretty lengthy meeting in Vienna on Monday. What they would eventually agree on wasn’t exactly a closely guarded secret. It was long suspected that the group would vote to extend the supply curbs that OPEC members agreed last December. Our suspicions were bang on – they did just that! 

Sounds a bit cheeky – why would they do that? Well, you can’t blame them, really. The OPEC+ decision is entirely protectionist and comes in the wake of a global decline in demand for oil, yet more instability in the Middle East, and a simultaneous relentless increase in US production of the expensive black gloopy stuff (oil). What does all of that mean? Dwindling profits for the 21 OPEC+ members and a lot of unhappy bunnies.

WTI on the Up

Oil prices jumped to their highest point in more than a month, with WTI hitting $60 per barrel on Monday, before dropping down to around $58 shortly after.

Oil prices are up, for sure, but, to be honest, the rise seems to have more to do with the more-than-a-little-bit-positive outcome of Trump and Xi’s meeting after the G-20 summit. That’s right, in case you missed it, the US and China are now willing to sit at a table together and chat. Rejoice! Traders would be wise to keep an eye on both the fallout from the OPEC+ decision and any developments on the US-China front. Watch those markets!

Trump in His Flip-Flops

It’s well and truly summertime and Donald Trump is getting into the spirit, slipping on his flip-flops to pull a U-turn on the Huawei ban. Last month, the Chinese tech giant was placed on a watchlist and US companies – which Huawei relies on for the production of its handsets – were barred from selling to the Chinese titan.

Fast forward just a month (and skip a lot of heartache and head scratching from consumers) and a warm fuzzy feeling is starting to spread between the US and China, albeit slowly. Trump has now completely reversed his previous hard-line decision, which is big news and shows positive signs for a potential trade deal. 

Okay. Now delete that mental image of Trump in flip-flops.

Mark Your Calendar – Important News Inbound!

The latest Non-Farm Payroll (NFP) report is due this Friday, 5th July. Not to put a jinx on it, but things are looking a little rosier on the US employment-front following last month’s disappointing figures. The Manufacturing PMI grew 0.8% in June, going from 53.7% to 54.5% – positive signs for the US economy. Keep your eyes peeled for both further hints and movements in the USD pairs this Friday.

By the way, while we’ve got you, we simply have to let you know that you can trade CFDs on oil, USD forex pairs and CFDs on a whole bunch of tech stocks with TIOmarkets (no Trump flip-flop trading, just yet – bear with us).

You can trade these and over 100 other instruments, with a single no-fuss, no-hassle flat-rate subscription fee, featuring commission from ZERO percent and spreads from ZERO pips! So there’s only one thing left to do…Sign up and give it a go.

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