Ireland’s Prime Minister Leo Varadkar said British lawmakers would be making “a terrible political miscalculation” if they reject the deal negotiated with the European Union thinking they will get a better one. Some Tory leadership candidates have pledged to renegotiate the withdrawal agreement rejected by the British parliament three times. Managing the land border between Ireland and Northern Ireland has proven the most contentious element of Brexit. “I am a little concerned that some people in London seem to think the failure of the House of Commons to ratify the agreement automatically means they will get a better agreement.” Varardkar said.
OPEC members are close to reaching an agreement on production cuts, the energy minister of the United Arab Emirates al-Mazroui said yesterday. Russia and OPEC agreed to cut their output by 1.2 million barrels per day (bpd) for six month beginning 2019. Even as OPEC and allies reduce output, U.S. has continued to increase it and some analysts predict weaker economic growth will reduce oil demand. Oil prices fell nearly 2% today, weighed down by a rise in U.S. crude inventories despite growing expectations of ongoing OPEC-led supply cuts. Brent crude futures were down 1.86%, at $61.13 a barrel and U.S. West Texas Intermediate (WTI) crude futures were down 1.95%, at $52.23 per barrel.
China’s factory inflation slowed in May as weakening manufacturing decreased demand while a surge in food prices could add to rising living costs. The slowdown was driven by declines in industrial commodities prices and was in line with the faltering factory activity seen in May. It also comes amid China’s worsening trade dispute with Washington, which analysts fear could trigger a global recession with the IMF warning that the current and threatened US-Sino tariffs could cut 2020’s global GDP by 0.5%.
Spot Gold closed at $1326.84 per ounce on with a 0.08% loss against Monday’s closing price. Gold prices slipped as risk sentiments strengthened over softer geopolitical themes in the current term. The US-Mexico deal and looser Chinese economic policies buoyed risk assets as investors contemplate a potential revival of global growth prospects. The precious metal though receiving support from looming dollar weakness (US rate cut expectations) continues to face considerable headwinds as risk appetites improve over a dovish pivot by the US Federal Reserve.