Today Japan has a day off, as the country celebrates the Spring Equinox.
On Friday, March 17th, most US stock indices fell slightly, as investors waited for further drivers from the G20 summit fields before proceeding with the trade.
After the end of the Federal Reserve and other central banks meeting, investors are waiting for a review of the Obamacare law, the US tax reform project and European elections.
An unpleasant surprise was the decline in the banking sector last week, which lost about -1% after the meeting of the Federal Reserve System. Goldman Sachs Group Inc. fell by -1.7%, and shares of JP Morgan Chase & Co. lost -1,1%.
President Donald Trump completed his first official negotiations with German chancellor Angela Merkel. Following the meeting, Trump expressed his confidence in maintaining friendly American-German relations and reaffirmed his desire for more “fair” trade between the countries. In general, Merkel’s comments were neutral. At the same time, she recalled that the United States must fulfill taken obligations.
Published on Friday, economic data showed that the volume of US industrial production in February remained at the same level. While analysts had expected production growth of 0.3%. The consumer sentiment index has risen to 97.6 in March from 96.3 in February.
The Dow Jones Industrial Average dropped 19.93 points or -0.10%, to close at 20.914.62.
The S&P 500 index lost during the session -3.13 points or -0.13%, to close at 2.378.25.
The index of Nasdaq Composite almost did not change adding only 0.24 points or 0.00%, finishing the session at the level of 5.901.00.
Earlier today, Asian stock indexes have been traded in different directions, analyzing the results of the meeting of G20 finance ministers and central banks heads.
Financial leaders of the world largest economies spoke out against competitive and disorderly devaluations in the foreign exchange market at the meeting in the German city of Baden-Baden last weekend. But they could not agree on the preservation of free and open global trade, emphasizing the shift towards protectionism.
The new US administration managed to influence the decisions of the finance ministers and heads of the G20 central banks and convince them to remove the mention of protectionism from the final communique and the Paris agreement on climate.
On Sunday, German chancellor Angela Merkel and Japanese Prime Minister Shinzo Abe tried to protect free trade. Leaders called for the signing of a new trade agreement between Japan and the European Union, distancing themselves from the protectionist rhetoric coming from Trump’s administration.
S&P / ASX 200 in Australia fell by -20.74 points or -0.36%, closing at 5.778.91.
Shanghai index increased by 13.36 points or by 0.41%, finishing the session at the level of 3.250.81.
Hang Seng in Hong Kong is growing by 154.99 points or 0.66%.
The growth of protectionist sentiment in the world weakened the US dollar
The US dollar was trading lower during the Asian session after the G-20 meeting in Baden-Baden. During the meeting, it was obvious that most countries want to expand the volume of free trade in the world. At the same time, US officials opposed the expansion of free trade, indicating a preference for bilateral treaties.
The renewed fears of increased protectionism in trade are a negative factor for the main world currency.
The index of consumer sentiment in New Zealand from Westpac in the first quarter amounts to 111.9, against 113.1 in the previous quarter.