After the 1st round of French Presidential Election, Euro has touched higher price against US dollar. The sign of more stable political environment makes investors to invest on European stocks as well as Euro currency.
The first round result shows considerably higher chance on presidency of Emmanuel Macron against Marine Le Pen.
It was a week ago that Euro has face sharp decline against US Dollar. The Brexit and United States Presidential result has increased the political risk specially on European Currencies.
The ban request on United States coal shipments in an open letter from Christy Clark to Prime Minister Justin Trudeau shows counteraction to the new US tariffs on softwood lumber. The tensions heated up after the increment on softwood lumber tariffs from Canada to the United States.
After President Trump addressed termination of NAFTA (North American Free Trade Agreement) agreement, some Canada and Mexico stocks plunged sharply. The attacks of President Trump on Canadian dairy pricing intensify the tension.
Despite of previous address regarding NAFTA (North American Free Trade Agreement) termination, President Trump agreed to negotiate with President Peña Nieto and Prime Minister Justin Trudeau for a better and stronger agreement for all three countries.
The two-decade old agreement needs swift reconsideration by the three leaders to prevent the White House intention from withdrawing. Last week news revealed that the White House has prepared a draft to notify the United States withdraw from NAFTA. This Draft would give Canada and Mexico a six-month notice of exit from the agreement by United States.
Saudi Arabia’s oil-based economy has seen so many fluctuations since the first drilling projects, but the kingdom had a great growth by the oil price explosion in 1970s. The oil windfall changed the face of the kingdom and people, especially within the next decades when they got more accustomed to abundance.
The 2014 oil slip had its impact on welfare in Saudi Arabia since they used their currency reserves and face a budget deficit reached 16% of economic output. The oil price collapse carried big challenges to GCC countries especially Saudi Arabia as engaged directly to regional conflicts.
The kingdom has been facing the regional changes politically and economically since 2011 when the “Arabian Spring” began; the army was engaged in Yemen civil war.
It seems that the biggest petroleum countries are seeking to double their gains in oil markets by adapting a reduction agreement once again.