US stock indices have had a positive week and are waiting on earnings reports from big banks in JPM , WFC ,and C out later tonight. Markets have chosen to ignore threats of a trade war between the US and China and have focused on the strength of the domestic economy and the potential for good growth in earnings.
European investors are pushing up stock indices in a follow up to solid price action in the past few sessions. The US Dollar is also performing well as trade concerns fuels demand. Comments by Trump that the US/UK trade deal may be doomed has put some pressure on the GBP and also the EUR.
US investors have yet again put aside concerns of a serious trade war between the US and China , and have focused more on potential corporate earnings which begin with the big banks on Friday. The underlying strength of the economy and the continuing help to earnings from the Tax reform should allow earnings to grow strongly and stocks to be well supported.
European investors have been transfixed by Trump and what he might say to NATO at recent summit. His initial comments that Germany was "captive to Russia because it purchases large amounts of oil and gas" and that he didnt see a place for NATO have been tempered today in a final Press Conference where he said NATO had never been stronger and that everyone was friends as long as every country paid their dues.
With the US administration announcing a new round of tariffs to be placed on Chinese imports this morning , we have seen investors in Asia , Europe and now the US rush to close out of growth assets and move into defensive positions. The US has listed US$200 bn worth of products that will be subject to a 10% tariff from September after a public discussion.
An escalation in the trade war between the USA and China has pushed the market back into defensive positions with stocks lower , bond yields lower , and the US dollar gaining strength.
US investors continue to maintain optimism that corporate earnings will improve enough to maintain positive momentum and offset any negatives from trade tensions. Over the past few sessions we have seen stronger stocks , higher bond yields and a weaker US dollar which has helped the price of many commodities and eased some of the selling seen in Emerging markets.
European investors continue to put aside concerns with trade and political issues and instead focus on the upcoming corporate earnings and economic data. Talk over the past week from ECB members that Europe is strong enough to begin winding back some of the huge stimulus package has improved the overall sentiment.
Investors around the globe have put trade concerns on the back burner and have moved back into stocks in a big way. Asian indices were all higher as are European indices and now also we have all three US indices sharply higher. The US Dollar has weakened also from its peak at the end of June and this has helped commodities and Emerging markets.
We're very proud that Dipio's founder, Asaf Zmirly, has assisted to locate and rescue the boys who were lost in the Thai cave. Within the same day of contacting Asaf, the team flew with the special communication equipment from Israel to Thailand, and assisted in finding the boys. Asaf's expertise in communication and special operations helped him to find the proper solution. As per the interviews below, Asaf chose Maxtech's unique mesh technology to facilitate communications to the Thai Navy Seals operation and to find the boys. Mesh technology enables each handset to provide connectivity to the nearby handsets thereby establishing a communications link all the way through the cave.
Of course, this is the second time in recent years, that Israel has provided invaluable support to Thailand in her time of need.
We look forward to the speedy rescue of the remaining boys and full recovery of all concerned. Deepest sympathies to the heroic diver who gave his life to rescue the boys.