Markets are high on optimism, and the coming days and weeks will be crucial if these levels are to be maintained. Any developments on the international trade will be closely watched, with the important deadlines of the United States with China on one side and Europe on the other. The good news is that Donald Trump seems to have soften his stance. Just like China, he badly needs a deal. A better international trade environment would boost markets morale, and in turn the economy and in turn his voters at the next election. This is why he is close to abandoning his threats to enforce car taxes in Europe. While the US administration officially praises the progress made with the EU, unofficially, the White House has no interest in starting a new fire in addition to those it already has difficulty fighting.
Elsewhere in the world, Evo Morales can now be described as a former Bolivian President in exile" since he found refuge in Mexico after being ousted from power. In the United Kingdom, Nigel Farage has strengthened the Conservatives' positions for the upcoming elections by renouncing the use of Brexit candidates in the constituencies against Boris Johnson's troops. In Hong Kong, tensions rose over the week-end, after the death of a student during clashes.
In Spain, the extreme right party Vox strengthened its presence in Parliament. Formed in 2014 by a former member of the Conservative Party, Vox entered parliament with 24 seats last April. Thanks to Sunday's parliamentary elections, the party doubled its presence with 52 seats. Despite this fine victory, which makes the far-right party the third largest political force in Spain, the socialists remain in the lead (28% of the votes for the PSOE) followed by the Popular Party (20.8%). On the other hand, the Socialist Party will have difficulty forming a government, due to the fragmentation of the Parliament and the absence of a majority for the left.
Today, there is one statistic and two speeches on the agenda. First, the ZEW German Financial Sector Confidence Index, then, a public speech by Fed member Richard Clarida, at an event organized in Switzerland. Finally, a speech by Donald Trump at the Economic Club of New York at 12:00 pm.