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28 May 2018
 |
| Hong kong financial markets (The Total Investment & Insurance
Solutions) |
European stock markets slipped Monday after small gains in Asia as
investors digested the latest developments in North Korean diplomacy and
Italian domestic politics. Crude oil extended losses as traders braced for
possible output increases. The Total
Investment & Insurance Solutions
KEEPING SCORE: France's CAC 40 fell 0.2
percent to 5,533 and Germany's DAX slid 0.1 percent to 12,929. Italy's
benchmark FTSE MIB opened higher but drifted lower to trade down 1.4 percent at
22,094. British and U.S. markets were closed for public holidays, meaning global
trading volumes were lower than usual.
ITALIAN POLITICS: The euro was volatile,
touching a six-month low after Italy's president vetoed a euroskeptic candidate
for economy minister proposed by leaders of two populist parties trying to form
a government. President Sergio Mattarella said Sunday he was refusing to
appoint Paolo Savona, whose policies could rattle nervous markets and further
inflate the country's staggering debt load. Instead, he named an economist,
Carlo Cottarelli, to lead the country until new elections. While avoiding a
populist government that investors had worried about, the move means more
political uncertainty. The euro fell to $1.1643 from $1.1652 on Friday. The Total Investment & Insurance
Solutions
ANALYST TAKE: "The euro has had a rough
go lately, reflecting a firehose of negative news headlines. It started with
the loss of data momentum and now political risks have injected a new risk
premium. We still believe that Italy doesn't pose systemic risks to the single
currency," said Mark McCormick, the North American Head of FX Strategy at
TD Securities.
NORTH KOREA: President Donald Trump's latest
reversal on a summit with North Korean leader Kim Jong Un and South Korean
President Moon Jae-in's impromptu meeting with Kim on Saturday eased fears over
the Korean Peninsula's nuclear crisis. Trump tweeted that a U.S. team is in
North Korea to make arrangements for the planned June 12 summit in Singapore,
days after he said the U.S. was withdrawing from the meeting. Meanwhile, Moon
revealed details about his surprise meeting with Kim in the Panmunjom truce
village, saying Kim had committed to sitting down with Trump and to a
"complete denuclearization of the Korean Peninsula."
ASIAN SCORECARD: Japan's benchmark Nikkei 225
index edged 0.1 percent higher to 22,481.09 and South Korea's Kospi rose 0.7
percent to 2,478.96. Hong Kong's Hang Seng rose 0.7 percent to 30,792.26 while
the Shanghai Composite in mainland China dipped 0.2 percent to 3,135.08.
Australia's S&P/ASX 200 fell 0.5 percent to 6,004.00. The dollar slipped to
109.32 yen from 109.40 yen late Friday.
ENERGY: Oil futures resumed tumbling after
taking their worst losses in months on Friday, battered by reports that OPEC
countries and Russia could start pumping more oil soon. Benchmark U.S. crude
tumbled $1.15 a barrel, or 1.7 percent, to $66.73 a barrel in electronic
trading on the New York Mercantile Exchange. The contract dropped $2.83, or 4
percent, to settle at $67.88 on Friday. Oil producing countries cut output at
the start of 2017 following a big supply buildup and agreed last year to extend
those cuts through the end of 2018, but according to reports last week, they
might agree to start raising production in June.The Total Investment & Insurance Solutions
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