Markets are continuing to see buoyancy as financial markets hit all-time high levels in intraday trading last week, while crude oil prices continued their strong uptrend. Markets have slowed a bit to trading flat this morning. Crude is currently trading at $57.36, up a meager 7 cents.
Fuel prices are also rising this morning. Diesel is trading at $1.9069, down 0.9 cents. Gasoline prices are $1.8694, up 1.3 cents.
Markets are hopeful that progress will be made between the US and China on trade talks at the G20 Summit later this week. The G20 is a gathering of the world’s largest economies, and the group will be discussing any number of global issues. More important, though, are the sideline conversations between different heads of state. Trump and Chinese President Xi are expected to meet to discuss their deteriorating trade relationship. Although no concrete progress is expected, markets anticipate a resumption of negotiations to eventually lift the current tariffs imposed by both sides.
On Friday, Trump cancelled planned strikes on Iran in retaliation for their shooting down a drone, claiming that the death count would be disproportionate. For how hawkish Trump’s foreign policy team leans, the administration has thus far been slow to allow Iran’s provocations to escalate to broader conflicts. Although the administration was quick to accuse Iran of earlier strikes, Trump chose not to escalate the violence, and he called this last attack a “very big mistake” by an Iranian individual, rather than a calculated state action. Still, on-going issues could eventually escalate to broader conflicts that the administration cannot ignore.