The dollar is trading higher against major currencies. Traders are awaiting U.S. consumer inflation data. Tariff threats between Washington and Beijing are also being considered. The yen has weakened due to expectations of a stimulus package from Japan's new Prime Minister. Sterling is under pressure after British inflation data remained steady. Markets are anticipating interest rate cuts from the U.S.
Trump announced an upcoming diplomatic trip to Malaysia, South Korea, and Japan, including a significant meeting with Chinese President Xi Jinping. Trump also cancelled a planned summit with Russian President Vladimir Putin, citing a lack of progress and expressing optimism that Xi could influence Putin to end the Russia-Ukraine war.
The sanctions against oil giants Rosneft and Lukoil followed months of calls from Ukrainian President Volodymyr Zelenskyy to hit Russia with harder sanctions on its oil industry.
Asian markets opened lower after a volatile session on Wall Street. Japan and South Korea saw significant drops. Tech stocks faced pressure from company outlooks and earnings. Trade tensions between the US and China resurfaced. Oil prices jumped on new US sanctions. Retail momentum trades experienced sharp losses. US companies are showing strong earnings this quarter.
President Trump announced the cancellation of a planned summit with Russian President Vladimir Putin, citing a lack of progress in diplomatic efforts and a feeling that the timing was not right. Trump expressed frustration that discussions with Putin, though positive, have not yielded tangible results. This decision coincided with the White House imposing new sanctions on Russian oil exports.
