BEFORE THE BELL: BoC considers Canada-US trade spat ahead of interest rate decision; crude price rally continues
As trade war tensions escalate, investors are fretting over economic impacts.
The US is reportedly ramping up the pressure on China again as Trump’s economic adviser warned the White House is not softening its stance on Chinese technology firms. This comes after US officials said rather than an all out ban on Chinese tech investments, the acquisition proposals would be vetted before getting approved. Analysts suggest this may be leading to the end of a tech boom that has been boosting the Asian markets.
The trade tensions between Canada and the US may impact interest rates as BoC Governor Stephen Poloz noted the spat would play a big role in discussions leading up to the interest rate decision on July 11th.
The rise in oil prices once again is causing inflation concerns for investors. US crude is gaining to 72.28 a barrel with various factors in play. A shortage from Libyan and Canadian oil flows and pressure from the US to cut imports from Iran is fueling the rally. Gas demand is also expected to spike as Canada and the US head into long weekends.
The Loonie, which has largely remained separate from the energy boost, is gaining slightly to 75.25 cents US.