The markets handled President’s Trump’s latest about turn at the G7 well yesterday as we get used to ‘expecting the unexpected’ from the US President, the Cad took a bit of a hit initially but managed to recover and stock markets are nicely back in the black as we approach today’s ‘Krump’ summit. Asian markets are set to open on the front foot and all eyes will be on the historic meeting in Singapore with most market participants expecting that we’ll see a fair amount hand shaking and posing for the worlds media as some sort of agreement on Korean denuclearisation is made.
The market of course is still wary of the downside risk of the summit turning into a bit of a disaster, bringing nuclear tensions coming strongly back to the fore and investors will be ready for this eventuality, especially given the personalities of the two leaders involved and this weekend’s G7 performance from Trump.
It’s a huge week for the market ahead with plenty of data, risk events and central bank meetings coming up and we could find ourselves looking back on this summit as a bit of a non-event from an investors point of view by the time we hit Friday’s close.
The focus will be on Singapore for the Asian session but as we move into the London open there is some key fundamental data due in the UK with the employment numbers being released swiftly followed by the latest German ZEW data. Into the US session and possibly the most important data release this week comes out in the form of the US CPI number with analysts looking for a 0.2% increase in the MoM figure and 2.8% in the YoY.