Market News

British Prime Minister Theresa May called for a deep partnership with the European Union after Brexit, setting out ambitions for a tailor-made deal including financial services but accepting EU regulation of chemicals, medicines and aerospace industries.

Canada’s economy grew modestly in the fourth quarter and well below the strong pace set in the first half of the year, boosted by housing gains ahead of tighter mortgage regulations but hurt by a smaller accumulation of inventories.

The comdolls (NZD, AUD, and CAD) were in a race to the bottom during the morning London session, apparently because of another bout of risk aversion and Trump’s rhetoric on trade wars being “good” and “easy to win.”

Oil prices were set on Friday to post their first weekly decline in three weeks following a sell-off in global stock markets after news of planned U.S. tariffs on steel and aluminum raised fears of a trade war.

European shares fell to new two-week lows on Friday after Donald Trump said the United States would impose tariffs on imported steel and aluminum, prompting worries about a global trade war.

A lack of other major reports highlighted a strong report from New Zealand that boosted Kiwi across the board. Meanwhile, the dollar continued to lose pips on the back of Trump’s tariff changes.

U.S. President Donald Trump’s planned tariffs on steel and aluminum will distort global trade and cost jobs, Australia’s trade minister said on Friday, highlighting the risk of retaliatory measures as Asian exporters sought more detail on the plans.

Just when it seemed like a regular grind for the markets, another round of hawkish remarks from Powell plus Trump’s announcement on imposing steel tariffs spurred a sharp selloff.

Negotiators trying to rework the NAFTA trade deal on Thursday were hit by the prospect of a battle over U.S. steel tariffs that could make it more complicated to build autos in North America, one of the most sensitive issues at the talks.

U.S. President Donald Trump tweeted on Thursday that the U.S. steel and aluminum industries need “free, fair and smart trade” as a U.S. cable channel reported that he will make an announcement on tariffs at 11 a.m. (1600 GMT)

U.S. consumer prices increased in January, with a gauge of underlying inflation posting its largest gain in 12 months, bolstering views that price pressures will accelerate this year.

Oil fell for a third day on Thursday, dropping towards $64 a barrel as rising U.S. inventories, record output and a stronger dollar outweighed high OPEC compliance with its supply-cutting deal.

The higher-yielding Kiwi was the top-performing currency of the session, even though commodities were in retreat and risk aversion was the name of the game. The euro, meanwhile, was feeling some bearish pressure.

European shares slid on Thursday as a flurry of uninspiring earnings updates from retailer Carrefour and advertiser WPP kept the mood downbeat, while broader jitters over tightening monetary policy spilled over into a new month.

The Aussie dropped sharply as a quarterly report missed estimates. The Kiwi also clocked in losses, however, on overall risk aversion and threats of a trade war between the world’s two largest economies.

Gold prices fell for third day on Thursday, weighed down by a stronger dollar while investors awaited the second session of Federal Reserve Chairman Jerome Powell’s testimony before the Senate Banking Committee later in the global day.

Brexit jitters continued to drag the pound down for the rest of the U.S. session and market participants seemed to be in no mood to take on more risk.

U.S. economic growth slowed slightly more than initially thought in the fourth quarter as the strongest pace of consumer spending in three years drew in imports and depleted inventories.

The pound really suffered during the morning London session, thanks to renewed Brexit-related jitters after the E.U.’s draft withdrawal agreement was released. Meanwhile, the Aussie and the yen were fighting for the top spot.

World stocks were set to snap a record 15-month long winning streak on Wednesday, tumbling another quarter percent after new Fed boss Jerome Powell’s comments suggested the possibility of four U.S. interest rate rises this year rather than three.