Focus 6th July – world shares may move sideways

The rising trade tensions between USA and its trading partners, especially China, were in focus and investors are keep eyes on 6th July when The United States tariffs will start. The most stock markets in Asia fell last week and Thailand fell hardly 100 points in 2 weeks. SET could not head up above 1,600 on Friday so it may move sideways down around 1,585-1,600 on Monday as the growing inflation inside the country may give good internal support but external fears as well as foreign fund flow out may continue pressure SET.
EU summit had ended last week with the plan of secure migrant centers so it supported euro to rose closely to 1.1700 dollar but German interior minister offered to quit in a row over migration policy so this issue may pull down euro lower than 1.1600 dollar on Monday. Brexit had no progress on the EU summit so it may affect to London market as well as British pound so GBP/USD may decrease to 1.3100 points. The United States dollar may hold steady supporting by Fed policy, rising bond yields and economic data.
The steady greenback may decrease gold price to 1,250 or lower so I suggest the support line for gold at 1,245 dollar and 1,255 dollar as the resistant line. While Bitcoin price may move in the narrow frame above 6,000 USD. I think Bitcoin may try to retest 6,500 dollar but it may not break the resistance from the low volume.
Economic indices in focus:
• China: Caixin manufacturing PMI (Jun) at 08.45 a.m.
• Thailand: CPI (Jun) at 11.00 a.m.
• Germany: Manufacturing PMI (Jun) at 14.55 p.m.
• UK: Manufacturing PMI (Jun) at 15.30 p.m.
• USA: ISM Manufacturing PMI (Jun) at 21.00 p.m.

By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.

Olymp Trade Review