Asian actions had a cautious start on Monday (7), with investors awaiting more details on US import fares before the deadline of July 9. Oil fell after OPEC+ (Organization of Petroleum Exporting Countries) increased production.
The dollar remained stable compared to the main pairs at the beginning of the trading session, while US stocks retreated. Asian action contracts indicated that Australian, Japanese and Hong Kong markets can open stable when negotiations are resumed on Monday (7).
The cautious onset occurs at a time when the trade war continues to obscure the perspectives of inflation and corporate profitability. The US Secretary of Commerce, Howard Lutnick, said the fares per country will take effect on August 1, with the main US business partners on a weekend to secure business agreements or press longer.
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“This reflects some uncertainty about the deadline for expiration of the reciprocal tariffs of July 9,” said Tony Sycamore, IG analyst in Sydney. A 10% to 15% rate in most, if not in all countries, would be welcome by traders, while a 20% rate would “shake markets to varying degrees, depending on the extension of the increase,” he said.
Gross oil has fallen nearly 2%, as OPEC+ said it will increase oil production even faster than expected next month, with eight important members of the alliance agreeing to increase the offer by 548,000 barrels a day.
