This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission.
(Kitco News) – European stock markets were mostly weaker overnight. Asian stocks were mostly firmer, led by China, which on Thursday injected liquidity into its financial system for the first time in over two weeks. U. S. stock indexes are pointed toward weaker openings when the New York day session begins. Gold prices are holding solid gains and are at a five-month high on safe-haven demand.
Heightened geopolitical risks are still on the front burner of the world marketplace. A meeting between the U. S. secretary of state and Russia’s foreign minister ended Wednesday without agreement and likely pushed the two sides deeper into divisiveness. Secretary of State Rex Tillerson said Russia and the U. S. just don’t trust each other. And during a press conference on Wednesday afternoon Trump said U. S. relations with Russia are ‘bad.’ Trump at the same time praised Chinese leader Xi Jinpin. That move could have been calculated by Trump, as he appeared to suggest a warming relationship with China and its third-strongest military in the world, and one that has the most influence over North Korea. The U. S. Navy has warships headed for waters off the Korean peninsula. Trump also said he is not going to name China as a currency manipulator-likely in exchange for China doing some arm-twisting on North Korea.
This post was published at Wall Street Examiner by Jim Wyckoff ‘ April 13, 2017.