The mood in financial markets is relatively upbeat at the start of a very busy week, as investors shrug off the G7 meeting that didn’t exactly go to plan as President Donald Trump rejected the prepared communique and left early.
Ahead of next week’s major central bank meetings and key data releases, the market’s focus has turned to trade tensions as the G7 meetings get underway in Canada and it looks like U.S. President Donald Trump is taking on the whole world. While leaders of the “G7-1” are showing great unity, Trump continues to isolate himself by demanding “fair” trade agreements especially with Canada and the European Union.
With U.S. President Donald Trump already sparking uncertainty by lashing out at Canada and France ahead of the meeting, optimism has diminished over any agreement being reached on trade during the two-day summit. Risk sentiment could take a hit if the talks between G7 leaders descend into disagreements and arguments. With escalating trade tensions seen as a major threat to global stability, the outcome of the summit could leave a mark on global sentiment.
Investors should buckle up for a potential showdown as trade is expected to be a major talking point throughout the summit. With escalating trade tensions seen as a significant threat to global economic growth, this could be a G7 meeting like no other.
Finance chiefs from the Group of Seven economic powers met on Thursday to discuss how to revive a faltering global recovery, with the United States leaning on Europe to reach a deal to avert a Greek bankruptcy.
Many are saying the yen dropped down too fast, but what exactly was the response the BOJ was looking for? How many of you recall a month or so ago the G7 saying countries need to stop using monetary policy to manipulate their currency?