Learn top 5 things in the market on Monday, June 1 | ATGNSE

By peter nurse

Investing.com - America is on edge as protests against police brutality, some turning violent, continue throughout the nation, while tensions between China and the U.S. continue to escalate. The oil industry is also in focus with OPEC potentially meeting early to discuss further output cuts. And there's the May U.S. ISM manufacturing PMI data to study. Here's what you need to know in financial markets on Monday, 1st June.

1. On the American shore; Protest turned violent

What began as a peaceful demonstration against police murders of black people after George Floyd's death as he was controlled by Minneapolis police officers has turned into violent protests that devastated cities from Philadelphia to Los Angeles And flared up near the White House.

Pressure is mounting on President Donald Trump, accusing him of inciting racial violence as he calls outside his White House to oppose his supporters. He has also said that the US will designate the far-right Anti-fa group as a 'terrorist organization'.

The turmoil was a fresh blow to the economy that was only emerging from the recession to the Great Depression. After poor data on spending and trading on Friday, the Atlanta Federal Reserve estimates that economic output could grow by 51% in the second quarter.

2. Trump pulls back from shore with China, for now

Financial markets look as usual to President Trump's response on Friday to China's decision to impose a national security law on Hong Kong. Finally, the President stated that he would give Hong Kong to the U.S. with his special status. But did not abandon the recently signed trade deal with China, as the market feared.

Nevertheless, relations between the two economic superpowers are particularly tense, and such a move cannot be ruled out in the future, especially as the US presidential election draws near.

Bloomberg reported on Monday that Chinese government officials have asked major US agricultural companies to stop purchasing some US agricultural commodities, including soybeans, as Beijing evaluates the recent escalation in tensions between the two countries.

Nordia analysts said in a research note, "If Trump wants to increase his chances of beating Biden in November, he needs an even tougher turn than China."

3. Stock set to open lower; Goldsmith becomes more positive

US stock markets are set to open slightly lower after posting a positive month in May. Continued disturbances across the country over increased tensions with China are likely to weigh on the market before ISM manufacturing PMO data is released.

As of 6:30 AM ET (1030 GMT), the Dow Jones 30 futures contract was down 26 points, or 0.1%, while the S&P 500 futures contract was down 0.2% and

Nevertheless, on a more positive note, Goldman Sachs has dropped its call for another steep sale.

The investment bank has retracted its prediction that the S&P 500 will fall more than 20% to 2,400 levels near Friday's 3,044 - and will now see downside risks capped at 2,750. The US equity benchmark may also rise further to 3,200.

"The powerful rebound means our last three-month target of 2,400 is unlikely to be achieved," the strategists wrote. “The monetary and fiscal policy support limit is likely to be around 10%. The investor position has oscillated between neutral and low and is a potential 5% reversal catalyst. "

In Asia, the benchmark Nikkei index rose 0.8%. In Europe, Germany closed for a June public holiday, both the FTSE 100 in London and the CAC 40 in Paris rose 1%.

4. ISM Manufacturing PMI on Data Slate

This week will see some Federal Reserve officials, as they are in the traditional blackout period before their next policy meeting later this month, but there will be plenty of economic data to study.

The significant non farm payroll release continues on Friday, but before that the ISM Manufacturing Purchasing Managers' Index for May arrives at 10 am ET.

It is expected to show improvement in sentiment in the manufacturing sector, with the index expected to climb from 41.5 to 43.0 in April, as parts of the US economy began to emerge from the lock-down.

However, no improvement has been given. Nordia said in a research note that it would not be surprising to see a single weak reading in May, citing the release of a disappointing weekly economic index from the New York Fed, as well as the April index not dropping as much as was expected .

The news from Europe was not particularly encouraging, although producers in the euro area appear to be crossing their nadir, activity is still occurring rapidly.

Also Watch: As US-China tension increased, Beijing advised India not to favor America.

5. OPEC meeting this week?

Brent and WTI contracts posted their strongest monthly gains in the months since May in the form of crude oil production by the Organization of Petroleum Exporting Countries and its affiliates, known as OPEC +. Its lowest level in two decades.

To solidify this change in sentiment, Algeria, which currently holds the OPEC presidency, has proposed that the OPEC + meeting for June 9–10 be brought forward for this Thursday.

The subject of a discussion will probably be the extension of the current reduction of 9.7 million barrels per day between one to two months. Under the current deal, the group is to reduce the scale of cuts to 7.7 million barrels a day from July.

ING said in a research note, "A shorter period could create an extension for Russians, who did not want to extend the current cuts until later this year, which was allegedly suggested by other members of the deal" to customers. .

Learn top 5 things in the market on Monday, June 1

Tension with China? ... what stress? ... This is comfort ... America officially admitted that Hong Kong is entirely of China ... so where is the tension?
Answer 0 1 Report
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